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Control of Non-Performing Loans in Retail Banking by Raising Financial and Consumer Awareness of Clients

Guest speaker

Kamile Taujanskaite (Vilnius Gediminas Technical University)


Campus de Gualtar | EEG - Room 0.04


Start20.11.2019 13:15End20.11.2019 14:15

Event summary

Summary of the lecture: 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 analysed. An idea that retail banks should not only focus on administrative handling methods, but also actively promote financial awareness and especially rational consumer behaviour 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 behaviour 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.