Credit risk is more than underwriting. It includes portfolio management, addresses growth, lender expertise, concentrations and exceptions to policy. Do your current practices and procedures match the bank’s risk appetite?
We can assist with the development, implementation and related policies for your credit risk management systems matching your risk appetite and meeting regulatory and audit expectations. We can show you ways to positively influence credit and risk management practices, how to effect change, and stay informed of changes in credit risk and risk appetite.
Competitive market pressures are driving an ease in underwriting standards, increasing the credit risk in loan portfolios. Whether its yield, term, guarantees or other concessions to win the deal, banks have loosened underwriting practices across a variety of commercial and retail credit products to grow or maintain loan volume.
- Portfolio Management Including New Industries
- Stress Testing
- Loss Reserve Allocations Including New CECL Guidelines
Stress-testing and Concentration Analysis
Bank Strategic Solutions provides stress-testing and concentration analysis as another means to assess the loan portfolio risk. We can stress the entire portfolio, or evaluate loan types that are at an increased risk. We use benchmarking to determine the base level and then use appropriate scenarios to test at moderate and severe changes to the rate, vacancy, environmental, and other factors.
In addition, we will test the portfolio under different sectors, loan types, and other factors that impact your customers to identify concentration risk.
Appraisal Process Review
We will review appraisal processes to ensure accurate reporting. We analyze both internally prepared valuations and commercial appraisals to ensure compliance with USPAP guidelines. We can also provide independent property valuations or reviews for your bank.
Our due diligence is flexible to meet your needs. We can assist with due diligence of the loan portfolio, securities, and dissecting other significant aspects of the Balance Sheet. We are also able to provide personnel assessments to identify key staff for retention efforts.
Questions about what we can do for you?
Bank Strategic Solutions has the tools and industry expertise to assist your bank. Let us help
you manage risk so you can focus on maximizing performance.