Introduction:

Crisis exit strategies are critical for bad banks, which are created to manage and resolve distressed assets while stabilizing the financial system. This training program is designed to equip participants with the expertise to develop and implement effective exit strategies, ensuring sustainable recovery and financial stability. It focuses on managing distressed assets, restructuring financial obligations, and navigating regulatory frameworks to achieve successful resolutions in challenging banking scenarios.

Program Objectives:

By the end of this program, participants will be able to:

Identify the concept and objectives of bad banks and their role in crisis management.
Develop effective strategies for managing and resolving distressed assets.
Perform financial restructuring and liquidation plans to stabilize operations.
Navigate regulatory and compliance challenges in bad bank scenarios.
Design long-term exit strategies to achieve sustainable recovery and financial stability.

Targeted Audience:

Banking and financial professionals involved in risk management.
Regulatory and compliance officers.
Restructuring and insolvency practitioners.
Policy advisors and government officials in financial sectors.
Financial analysts and consultants specializing in distressed assets.

Program Outline:

Unit 1:

Fundamentals of Bad Banks and Crisis Management:

Understanding the purpose and structure of bad banks.
The role of bad banks in managing financial crises.
Types of distressed assets managed by bad banks.
Key challenges faced by bad banks during crises.

Unit 2:

Strategies for Managing Distressed Assets:

Techniques for identifying and valuing distressed assets.
Developing asset recovery and resolution strategies.
Leveraging market opportunities for asset disposition.
Importance of effective collaboration with stakeholders to maximize recovery outcomes.
Monitoring and reporting on asset management performance.

Unit 3:

Financial Restructuring and Liquidation:

Developing financial restructuring plans to stabilize operations.
Managing non-performing loans (NPLs) and toxic assets.
Liquidation strategies for distressed assets and liabilities.
Balancing short-term recovery with long-term financial sustainability.
Assessing the impact of restructuring on stakeholders.

Unit 4:

Regulatory and Compliance Frameworks:

Navigating legal and regulatory requirements for bad banks.
Ensuring compliance with international standards and guidelines.
Managing governance and accountability in bad bank operations.
Addressing ethical considerations in crisis resolution.
Communicating effectively with regulators and stakeholders.

Unit 5:

Designing Exit Strategies for Bad Banks:

Developing timelines and benchmarks for exit strategies.
Transitioning assets and operations back to market participants.
Evaluating options for dissolution or transformation of bad banks.
Identifying key success factors for effective exit strategies.
Planning for long-term financial stability and market confidence.

Crisis Exit Strategies for Bad Banks