Ulaanbaatar, Mongolia, August 13–15, 2025

The event focused on advanced strategies for enhancing financial stability and accelerating the resolution of non-performing loans (NPLs), covering policy, investment, and innovation. The forum brought together representatives of government agencies, regional financial institutions, private companies, and leading international experts. The discussions covered current trends and challenges in non-performing asset management, as well as approaches to their effective resolution.

The forum continues to set trends in the distressed asset management industry. In 2025, new topics were added to the traditional agenda, notably the application of artificial intelligence, blockchain, and digital platforms to improve the accuracy of distressed asset valuation, optimize debt resolution processes, and maximize transparency in the trading of distressed assets.

The program opened with a plenary session titled “Ensuring Financial Stability: Overcoming Systemic Risks and Crisis Preparedness”.

This session addressed issues of systemic financial risks, macroeconomic challenges, and policies for strengthening financial stability. Experts discussed global market volatility, debt risks, and the role of coordination among regulatory bodies in preventing crises. Strategies were presented for strengthening financial institutions and increasing their resilience to external shocks, including regulatory and policy coordination, the adoption of innovation, the application of SupTech (supervisory technology), capital market development, and public-private partnerships (PPP).

Ms. Maha El Dimachki, Head of the BIS Innovation Hub Singapore Centre, noted the critical importance of coordination between regulators and supervisory authorities for effective crisis management. In her presentation, she also emphasized the important role of innovation and SupTech—technologies used by supervisory authorities to collect, process, and analyze data—which enables more effective risk identification and ensures regulatory compliance, thereby strengthening the resilience of financial systems.

In a panel discussion moderated by Mr. John W. Kan, Director of ERCI, ERDI, ADB, the panelists – Mr. Hojoon Kim (Senior Advisor, Korea Knowledge Sharing Program with Ecuador), Ms. Rachita Gulati (Research Economist, Asian Development Bank Institute), and Mr. Borkhuu Gotov (Director of the Risk Assessment Department, Bank of Mongolia) – noted that capital markets can play a stabilizing role during a crisis. Institutions can effectively prepare by building capital buffers, conducting stress tests, and applying supervisory tools.

In her presentation, Ms. Rachita Gulati shared research findings confirming the positive impact of such mechanisms on the economic resilience of Asian countries. Special attention was given to the vulnerability of frontier markets—economies with high growth potential but susceptible to significant currency volatility and debt risks. The key role of public-private partnerships in strengthening financial system resilience was also emphasized. Examples of coordinated anti-crisis measures in South Korea were provided, where effective collaboration between the government, the central bank, and regulators ensured the high effectiveness of the implemented measures.

The subsequent panel session was titled “Unlocking the Potential of the NPL Market: Investment, Innovation, and Regional Growth.”

Participants discussed market strategies for improving the efficiency of NPL resolution and enhancing investment attractiveness in Asian countries. Particular focus was placed on policies, market incentives, and financial innovations that foster the growth of the secondary market and attract investment.

Ms. Inha Shin, a Regional Cooperation Specialist at ERCI, ERDI, ADB, introduced a new regional database on non-performing loans, which allows for the generation of regional analytics.

The panel discussion, moderated by Mr. Alexander Raabe, an Economist at ERCI, ERDI, ADB, featured Mr. Kelvin Lester Lee (Senior Financial Sector Specialist, SD3 Financial Sector Office, ADB), Mr. Steve Poon (Senior Advisory Partner, ShoreVest Capital Partners Ltd), and Mr. Dong Hyun Shin (Director of the Investment Division, Hana F&I Inc.). The speakers emphasized that a clear, stable, and transparent legal and regulatory framework is essential for the effective development of the distressed assets market. Institutional readiness and the implementation of structural reforms significantly enhance the investment attractiveness of this sector. It was also noted that legal and market-based restructuring tools enable effective management of distressed assets, while private sector participation facilitates business recovery and value creation.

Mr. Dong Hyun Shin presented the experience of the Republic of Korea, where public-private partnership and securitization models are used to promote the development of secondary NPL markets, increase liquidity, and scale up private investment in this segment.

The forum's concluding session focused on the topic of “Legal, Sectoral, and Technological Solutions for Effective NPL Resolution.”

The main focus was on improving the legal and institutional framework, sector-specific aspects of restructuring, and the application of technology.

The panel discussion, moderated by Mr. Amar Gkhagvasuren, CEO of the Mongolian Bankers Association, featured Mr. Shagdarsuren Zuunai (Advisor, Mongolian Bankers Association), Mr. Bilguun Badamsuren (Senior Legal Counsel, Mongolian Asset Management Corporation), and Mr. Zhi Bang Tan (CFO, Longan Group Pte Ltd). In particular, the discussion covered India's experience in managing distressed assets through its state-owned AMC (NARCL), which has demonstrated high efficiency when supported by a robust legal and institutional framework. It was noted that for the NPL market to function fully, reforms are necessary in bankruptcy, judicial procedures, and the strengthening of regulatory oversight. In sectors with a high concentration of distressed debt, such as the mining industry, the application of specialized restructuring strategies is required. The use of advanced technologies—artificial intelligence, blockchain, and digital platforms—was also discussed to accelerate asset valuation, enhance market transparency, and optimize restructuring processes.

In addition to the summit discussions, the meeting of the IPAF Coordinating Council reached agreements on key areas of cooperation. The Council members endorsed the launch of a new ADB product: NPL Watch Asia 2025, which will be updated annually using regional analytics. It was agreed to update the official IPAF website by expanding analytical tools and launching an interactive database on non-performing loans. Special attention was given to the development of a regional online platform for NPL trading, with a pilot project to be implemented by ZSAMC (PRC), KAMCO (Republic of Korea), and DATC (Vietnam). The strengthening of engagement with government agencies and Deposit Insurance Corporations (DICs), including their regular participation in IPAF summits, was also supported. In addition, plans were discussed for selecting focus countries for more in-depth analysis in future editions of NPL Watch Asia, improving forecasting models, and introducing new formats for annual events and training.

The participation of “Problem Loans Fund” JSC in the IPAF Summit provided an opportunity to gain up-to-date information on international NPL management practices, learn about advanced tools and policies, and establish professional contacts with key industry players. The forum paid special attention to issues of regulatory and institutional reform, the application of technology, and the attraction of private capital into the recovery processes for distressed assets.