GBV (Gross Book Value):
Original (historical) price paid for an asset, without any depreciation deduction.
NPL (Non Performing Loan):
A bank loan is considered Non–Performing when the debtor does not pay within 90 days the agreed instalments. They are called “Not Performing” because the bank does not expect to recover from them and their presence weighs on the bank’s balance.
NPL’S SECURITIZATION:
It is the process through which banks clean their balance sheet from Non Performing Loan, in order to obtain immediate liquidity (see also here).
SPECIAL SERVICER:
A company, typically a bank or a financial intermediary, that carries out jobs of regulatory nature (“master servicer’s” functions) and of portfolio management. The latter is frequently delegated to other companies called sub-servicer (and in these cases, the special servicer plays the role of master servicer).
SUB-SERVICER:
Sub-servicer is a company that mainly carries out the activity of credit recovery on behalf of the special servicer that, in this case, plays the role of master servicer (see also here). EthicalFin NPL is a sub-servicing company.
UTP (Unlikely To Pay):
Pursuant to the Bank of Italy’s definition, are those borrowers that the bank considers not potentially able to pay their exposures in the immediate future, due to their financial and economical conditions. In contrast to NPL, this in not a case of total insolvency but only of fulfillment’s improbability. There are, in fact, numerous ways to let the debtors fulfill the payment.