After the prepayment in subrogation is made, the Taiwan SMEG provides information to the financial institutions to help them map out a plan to recover the prepayment. Actual recovery is entrusted to the financial institution. The Taiwan SMEG, however, may provide the financial institution with necessary information.

The reason of the entrustment is that the financial institution is in a better position to make the recovery, since the related loan agreement is signed by the financial institution and the borrowing enterprise. Moreover, the financial institution, through its branch network, holds comprehensive information about the borrowing enterprise and is usually equipped with competent and experienced staff. Thus, it is appropriate for the Taiwan SMEG to best take advantage of the financial institution’ s branch network as well as the knowledge and expertise of its workforce to pursue the matter.

In order to provide incentives to encourage financial institutions in recovering guaranteed non-performing loans (NPL), the Taiwan SMEG launched the Reviving Phoenix Program and awarded prizes to debt collection officers and banks outstanding in recovering guaranteed NPL.