Is Your Bank Prepared for the Next Economic Downturn? Credit Administration in Good Times & Ba

There have been a lot of conversations around loosening underwriting standards in banks nationwide and regulators raising the issue at their safety and soundness exams at individual banks. The adage that we approve our worst loans in good times comes to mind. It is when credit officers face their biggest challenges as production goals and overconfidence take precedence over credit risk management. Credit risk is typically defined as the risk that a financial institution’s earnings and/or capital is at risk due to losses from the decline or elimination of the value of assets (including off-balance sheet assets such as letters of credits, counter party agreements, etc.) due to a deterioration

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