Regulators expect financial institutions to have an “early warning” system in
place with skilled staff that can adequately identify deteriorating credit risk
in loans. The annual credit review of commercial borrowers is the critical
element of this process.
This webinar will address the four key points
regulators are emphasizing and how to satisfy their expectations. While
regulators allow financial institutions to establish processes for performing
various levels of annual credit reviews, the criteria for each level of review
needs to be clearly established by board-approved policy. Policy suggestions
will be provided.
- Regulatory expectations
- Depth of
review – minimal versus in-depth
- Scope of the review
- Timing of
reviews – tax return extensions
- Financial risk analysis
- Primary debt
service analysis, including stress testing
- Secondary repayment sources –
guarantor support and global analysis
- Leverage and capital review
- Management performance
- Working capital review and analysis
viability of the borrower’s business
- Loan structuring review
Collateral coverage reviews and analysis
S. Wayne Linder, Young & Associates, Inc.
Live and recorded webinar, handouts, quiz with answer key and training log are included.