The loan review process is a vital part of a bank’s risk management. The loan portfolio is frequently the largest earning asset of a bank. An independent review of the portfolio can identify risk and ensure appropriate risk grading. A loan review also provides an assessment of the adequacy of the Allowance for Loan and Lease Losses (ALLL) reserve.
Bank Strategic Solutions provides an objective risk-based review of the loan portfolio. We will provide pre and post-closing analysis to assess the quality of credit risk and identifypotential weaknesses in the portfolio. We then work with you to create a plan to improve the quality and adjust the reserve allowance. We offer on and off-site reviews to accommodate your needs.
Our review includes:
- A representative sample of the portfolio
- Accurate loan grading
- Loans to insiders and their related interests
- Compliance with established lending policies
- Credit and collateral exceptions
In addition, we offer related Credit Risk services:
- ALLL Assessments including CECL preparation
- Stress testing
- Concentration analysis
- Appraisal Reviews
- Due Diligence Assistance
- Assessment of the Lending Culture
We analyze the adequacy of the current Allowance for Loan and Lease Losses (ALLL) including the methodology of the qualitative factors based on the existing joint regulatory framework and guidance for community banks.
A review will also provide recommendations to prepare for the Current Expected Credit Loss (CECL) guidance. We can develop vintage modeling for the CECL analysis, and evaluate the data integrity and data warehousing for your bank.
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.