Bank Advisory

Many banks in Asia have problems with the level of their non-performing loans. Due to the absolute loss that this may generate, together with the cost of capital tied up in these assets, this is usually the most pressing issue affecting banks in the region.

Mandala assists these banks in various ways:

• Sale: Mandala has acted as financial adviser to help a bank prepare assets for sale. Although there is strong interest from investors, many sale processes have failed due to the poor structuring, preparation and execution of the sale process. However, Mandala are able to advise on how information should be prepared and presented and use our unique MandalaNet Lite software, which acts as a virtual data room for this process.
• Workout: Generally, banks will realise a higher return on distressed assets if they are able to work them out internally; however, if this is not done effectively the cost of capital will soon erode any potential improvement over the sale option. Mandala are experts in the management and collection of non-performing loans and can assist with practical and strategic advice. In addition, Mandala can also assist by introducing the MandalaNet asset management system, which will substantially increase the efficiency of the process.
• Stressed asset review: Many banks are unable to determine which assets may default and therefore are unable to take preventative action. Mandala’s team can quickly assess the performing loan book to identify risky assets and recommend actions that can be taken to preserve value.
• Strategic services: Mandala understand that many banks cannot afford to take the immediate cost of resolving all distressed assets, and that any resolution plan needs to take into account the financial and strategic situation of the bank involved. Mandala are experts in structured transactions which can help address this issue, and can also introduce other specialist solutions which will assist the bank to deal with its problem assets and quickly return to health.