Titled “Strategies for Dealing with Nonperforming Loans in Times of Economic Uncertainty,” the article outlines how banks and credit unions can prepare for continued economic effects resulting from the COVID-19 pandemic. Sherry and Scot discuss the risks financial institutions should review in their loan portfolio and how to handle nonperforming loans.
“Most importantly, be proactive and check in with borrowers frequently, including visiting their place of business (as local COVID-19 restrictions allow),” Sherry and Scot explain in the article. “…borrowers should not be allowed to ignore the situation or fail to respond to emails or phone calls from the bank.”
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