A Study Practice for Decrease of Non-Performing Loan (NPLs) of Government Housing Bank, Debt Managent at the Chonburi Area

Abstract

This study examined strategies for reducing non-performing loans (NPLs) at the Chonburi District Debt Management Division of the Government Housing Bank. According to the decrease in borrowers’ ability to repay their loan, The NPLs continuously increase. For this reason, it impacts the bank's need to increase reserves for substandard loans. The objectives of the study were: 1) To investigate the causes of the increase in NPLs, and 2) To propose methods for reducing NPLs in the Chonburi District. The study identified the causes of overdue debts as: 1) debtor behavior, such as unavoidable expenses, 2) bank-related factors, like excessively high interest rates, and 3) external factors, such as poor economic conditions and frequent changes in government assistance policies. The researcher developed problem-solving strategies, including establishing a mobile debt clinic to offer accessible, convenient, and rapid customer service. This approach also immediately informed supervisors about customer needs, enhanced the bank's image by showing its commitment to addressing issues and assisting the public, and aligned with the goals of preventing debt escalation, reducing NPLs, and increasing the volume of quality loans.