We took part in the Handelsblatt Annual Banking Supervision Conference again this year: Our board member Maik Mittelberg joined Tina Alvarez and Christian Beck on the panel “Resilience in the lending business: identifying risks, managing them consistently”. The focus was on dealing with rising NPL risks, effective strategies for limiting credit risks whilst maintaining stable customer relationships, and the question of how we can ensure stability without slowing down lending and transformation.
Below are some points and positions that are important to us as SaarLB in this crucial area:
A STRUCTURED APPROACH TO RISING RISKS
When risks in the loan portfolio increase, we at SaarLB rely on a clearly defined approach: from early risk detection through active restructuring and provisioning/divestment to realisation or sale – and, where necessary, adjustments to the business model.
EARLY DIALOGUE AS THE KEY
In our view, early, transparent dialogue with customers is crucial. Addressing observations openly, analysing causes together and formulating realistic options builds trust. Where exposures are fundamentally viable, restructuring takes priority over realisation – also in the interests of value stability and sustainable relationships.
STABILITY ENABLES TRANSFORMATION
Stability is not seen by us as a hindrance, but as the foundation for effective lending – even during transformation. It is important here to distinguish between transitional risks in the transformation process and unsustainable structures. Additionally, guarantees, support instruments and risk-sharing help to finance transformation responsibly.
QUOTE FROM MAIK MITTELBERG:
“For us, resilience in the lending business stems from early warning signs, differentiated risk management and transparent dialogue. We limit credit risks not through harshness, but through clarity – consistently and fairly.”
