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.