ON THE POSSIBLE TOOLS FOR THE PREVENTION OF NON-PERFORMING LOANS. A CASE STUDY OF AN ITALIAN BANK

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Elena Bruno, Giuseppina Iacoviello, Arianna Lazzini

DOI:10.22495/rgcv5i1art1

Abstract

This work analyses the contribution of an Information Systems (IS) to the implementation of credit monitoring as a new integrated process to prevent non-performing loans in a small bank. The study focuses on the process of active monitoring of the entire credit portfolio, aimed at guiding the best migration between risk classes. This is understood as a set of integrated activities, in which the quality of information becomes a major determinant of the outcome. Such tools support risk management in the decision-making process and aiding performance evaluation. The purpose of this work is to highlight the possibility of an IS to support this new integrated process of credit monitoring, providing increasingly reliable data, availability on demand and real-time information.

Keywords: Credit Monitoring Process, Non-Performing Loans, Information System

How to cite this paper: Bruno, E., Iacoviello, G., Lazzini, A. (2015). On the possible tools for the prevention of non-performing loans. A case study of an Italian bank. Risk governance & control: Financial markets & institutions, 5(1), 7-19. http://dx.doi.org/10.22495/rgcv5i1art1