One plausible explanation is that during the quarter of a century following Japan's post-bubble financial crisis businesses have simply muddled through, containing their non-performing debts
and overcapacity of supply facilities and human resources, and by this process the most successful in cost cutting and divestment have survived - the principle of the survival of the fittest.
In his first interview since he became the bank's chairperson, Elkosayer named these challenges as handling non-performing debts
worth EGP 4bn, raising the efficiency of assets owned by the bank estimated at EGP 2bn, diversifying the products it offers, developing the technological network, developing the labour force, and curing problems with the bank's capital base.
Moody's also highlighted the bank's high-quality financing portfolio and said QIIB's bad debt ratio remained within the limit set for such non-performing debts
within Qatar's banking system and lower than the globally prevailing and prescribed ratios among banks within the same category.
The credit reporting system will reduce credit losses from bad or non-performing debts
, and allow those who maintain a good credit rating to benefit from greater access to capital and better interest rates.
The bank is believed to have non-performing debts
The reporting system of the Al Etihad Credit Bureau will add value to the UAE's financial sector by enabling lending institutions to make informed decisions and it will encourage consumers to practice responsible debt management; this will in turn reduce credit losses from bad or non-performing debts
This resulted in several board shuffles and three CEOs in several months, with the incumbent John Hourican remaining in office for just over a year now and implementing a drastic restructuring that includes downsizing, the sale of non-core assets at home and overseas, as well as stringent plans to recover non-performing debts
, especially from major clients who have funds but refuse to pay.
Dikki said a part of the then non-performing debts
owed to the Paris and London Clubs were mostly loans to these enterprises.
As Marwan Ahmad Lutfi, CEO of AECB, said, "Effectively run credit bureaux are internationally proven to support responsible lending, enhance payment behaviour and reduce credit losses from bad or non-performing debts
Lutfi said that effectively run credit bureaus are internationally proven to support responsible lending, enhance payment behaviour and reduce credit losses from bad or non-performing debts
Last July, Bank of Moscow's non-performing debts
totalled about RUB360bn, bringing the lender to the verge of collapse.
The "plus" provided by the legal route can prove to be a much more efficient means of collecting non-performing debts
than relying on local contacts and the goodwill of your debtor.