Everyone in the banking industry is following the news, you see the statistics and the predictions. There is no doubt that there are going to be problems in your loan portfolio. Smart lenders should be asking:
- Have my policies and procedures kept pace with the changes of the last decade, and am I prepared to execute them in a digital space?
- Is my staff assembled, aligned, and trained to work out problem loans according to best practices and the chosen strategy of the bank?
- Are we equipped with technology to enable efficient problem loan management at a high quality?
- I know problem loans are coming, what should I be doing right now?
To help answer these questions, Crowe has developed a Problem Loan Management Framework.
In our recorded presentation “
- Problem Loan Management
- Covenant Testing
- Annual Review
- Financial Statement Receipt and Review
- Delinquencies Review
- Assessment and Monitoring
- Loan Documentation Review
- Site Visits
- Financial Condition Assessment
- Borrower Conversation
- Security Perfection Assessment
- Collateral Valuation
- Pre-workout Agreement
- Restructure/Return to Lending Group
- Exit (Borrower driven or loan sale)
Plus, we look at the kind of people, policies, procedures, and technology that can help.
To address the issues outlined in our Problem Loan Management Framework, we have developed the
- Deferral tracking
- Watched asset reporting
- Reserve calculator
- Relationship monitoring
- Action item tracking
- Touchpoint reminders
- Problem loan onboarding
Take action now to prepare for a wave of problem loans.
With the right guidance and technology, you can take care of your borrowers, your organization, and your books. Crowe services and solutions can help you find and address your credit portfolio risk.
By Ryan Plourde, Crowe, a Microsoft Dynamics 365 Gold Partner
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