From portfolio management, institutional growth, and lender expertise, to concentrations, stress testing, and loan review; it’s fair to say that credit risk is a lot more than underwriting. Competitive market pressures are driving an ease in underwriting standards, increasing the risk of loan portfolios.
At Bank Strategic Solutions, we take a comprehensive approach to address all aspects of Credit Risk. We assess the loan portfolios, policies, and procedures to ensure that they match your risk appetite and limit exposure. Further assistance with development and implementation of processes to manage the credit risk can help your organization meet 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.
We provide comprehensive Loan Loss Reserve assessments under the current regulatory guidance including methodology and qualitative factors and prepare the bank for CECL including our regulator-reviewed model development, data integrity, and warehousing evaluations.
Loan loss provisions are declining even as loan portfolios and concentrations are growing. Quantitative factors support lower values and qualitative factors may not reflect increased risk in concentrations or new product lines. Is your reserve sufficient for potential losses? Are you prepared for the current expected credit loss (CECL) methodology? Institutions will need to modify data collection and adapt reserve models or develop new ones to address new FASB guidance.
Assess the loan portfolio risk with Concentration analysis and defined stress-testing. Bank Strategic Solutions provides a comprehensive analysis to evaluate and identify loans that cause increased credit risk as well as testing the impact of economic and environmental factors.
Our due diligence is flexible to meet your institution’s needs. We will assist with comprehensive loan review or strategic testing of the loan portfolio, securities, and other significant aspects of the financial statements. We also provide personnel assessments for retention efforts of key staff.
The loan portfolio is often the largest earning asset of a bank. An independent review of the portfolio is a vital part of a bank’s risk management. The review will identify risk and ensure appropriate risk grading. Our 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 also assess pre and post-closing processes to ensure robust risk management and identify potential weaknesses within the portfolio. We offer on and off-site reviews to accommodate your needs.