Researcher at National Technical University of Athens Releases New Study Findings on Risk Management [A Non-Performing Loans (NPLs) Portfolio Pricing Model Based on Recovery Performance: The Case of Greece]: Insurance – Risk Management

2023 JUN 05 (NewsRx) -- By a News Reporter-Staff News Editor at NewsRx Policy and Law Daily -- New research on risk management is the subject of a new report. According to news reporting out of Athens, Greece, by NewsRx editors, research stated, “In this paper, a method was proposed for pricing NPL portfolios, which is currently a crucial point in the portfolio transactions between the banks and NPL servicers.”

The news correspondents obtained a quote from the research from National Technical University of Athens: “The method was based on a simple mathematical model which simulated the collection process of the NPL portfolios considering the debtors’ behavioral response to various legal measures (phone calls, extrajudicial notices, court orders, and foreclosures). The model considered the recovery distribution over time and was applied successfully to the case of Greece.”

According to the news reporters, the research concluded: “The model was also used to predict recovery, cost, and profit future cash flows, and to optimize the collection strategies related to the activation periods of different measures. A sensitivity analysis was also conducted to reveal the most significant factors affecting the collection process.”

For more information on this research see: A Non-Performing Loans (NPLs) Portfolio Pricing Model Based on Recovery Performance: The Case of Greece. Risks, 2023,11(5). (Risks - http://www.mdpi.com/journal/risks). The publisher for Risks is MDPI AG.

A free version of this journal article is available at https://doi.org/10.3390/risks11050096.

Our news editors report that more information may be obtained by contacting Alexandra Z. Marouli, Laboratory of Industrial and Energy Economy, National Technical University of Athens, 15780 Athens, Greece. Additional authors for this research include Eugenia N. Giannini, Yannis D. Caloghirou.

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