Interaction of the Republic of Kazakhstan second level banks with the Problem Loans Fund in working with problem loans

Abstract

The article considers the issue of organizing work with bad loans between the Bad Credit Fund and second-tier banks in Kazakhstan. There was carried out the analysis of the current state of nonperforming loans in the bank’s portfolio. Effective ways to deal with bad loans, as well as the possibility of financing troubled asset management activities, by combining the bank with the Fund and the direct repurchase of «non-performing loans» are considered. The Fund’s activities are aimed at improving the quality of loan portfolios of second-tier banks. Methods for determining the value of «non-performing loans» are also presented. In general, I believe that bad loans are one of the most important tasks of the bank. In the case of a market economy, working with problem loans will be one of the most pressing problems, and preventive lending measures will be taken.