OPEN LESSON
Lecturer: assoc. prof. dr. Kamile Taujanskaite - Vilnius Gediminas Technical University (Department of Financial Engineering)
Non-performing loan (NPL) problems remain urgent in many countries, despite relatively long-lasting macroeconomic recovery since the 2008–2010 crisis. NPL handling tools and methods currently used by the banks are not efficient enough to significantly reduce the NPL ratio and keep it within safe and sustainable limits.
During the lecture the current state and causes of NPLs in retail banking and the ways of improving their handling efficiency will be analyzed. An idea that retail banks should not only focus on administrative handling methods but also actively promote financial awareness and especially rational consumer behavior of clients as measures preventing the NPL is presented. The idea is
based on a synthesis of research results performed within three segments, which shape the background of the problem: first, the current NPL situation in retail banking, theoretical framework and methods of their control, second, the budgetary and borrower performance of households and contemporary trends within consumer behavior and, third, the NPL determinants, evaluation and
comparison of their impact.
Keywords for the lecture:
Commercial banks, non-performing loans, financial and consumer awareness, borrower performance, consumption patterns, determinants of non-performing loans.