A Comparative Legal Analysis on Non-Performing Loans Definition and its Sale Framework in Malaysia, Thailand, Indonesia and Philippines
With Covid-19 banking and financial relief measures in the region recently came to an end, it is viewed that non-performing loans ratio’s may increase and there may be a more proactive behaviour by financial institutions in dealing with their non-performing assets including disposing their non-performing loans comprising of both unsecured and secured products by way of sale and purchase to third parties. The purpose of this article is to analyse the current legal definition of non-performing loans in selected Southeast Asian countries together with international organisations recommended definitions. The article will further examine selected Southeast Asian prevailing legislations and regulations that governs the sale of non-performing loans. The author intends to adopt a multi-method research strategy primarily doctrinal legal research as well as qualitative research approach. This article aims to contribute to the legal fraternity and people in general with an overview of the current position in selected Southeast Asian countries.