These are unprecedented times, but we know the wave is coming. Every bank needs a strategy to get ahead of the coming wave of problem loans and work with your borrowers through tough times.
At 2.15% as of Dec. 31, 2019, the percentage of problem loans was at a slightly higher starting point than before the Great Recession. We can expect to see a continued increase in problem loans, but it’s unclear yet if they’ll reach – or even surpass – the peak of that recession. In the first quarter of this year, banks with $7 billion-$15 billion in total loans have the lowest volume of problem loans at 1.38%, while those with $15 billion-$50 billion have the highest at 2.49%. You can review more statistics in our report “
As you review more modification requests, see more delinquencies, deal with more workouts you’ll need better communication, better analytics, better processes.
It will help your team:
- centralize all your problem loan data
- drive decisions with granular problem loan data collaborate
- monitor processes and learn from past accounts.
You can benefit from a more consistent approach to problem loans. Crowe Credit360 for Problem Loans can help your team find, monitor, and manage risks in your credit portfolio more efficiently.
- Enhance your problem loan processes.
Drive adoption of problem loan best practices across your organization and create automated reminders on key actions.
- Track and mitigate risks.
Keep up with deferrals and late payments on single and multiple loans from your borrowers.
- Drive better visibility.
Streamline and aggregate all your problem loan data, and quickly add and categorize new problem loans.
You don’t have to take an ad hoc approach to problem loans. Manage your problem loans with reliability and accuracy with these key features.
- Specific reserve calculation
Quickly and accurately determines your organization’s credit loss reserves.
- Comprehensive reporting
Get detailed watched asset reporting and aggregated management reporting, including robust dashboards.
Refine the end-to-end processes your organization uses to work through problem loans.
- Action items
Keep your team on task with automated tracking and updates on key problem loan activities.
Our product brings your problem loans into clear view.
Stop speculating about when and where your problem loans might pop up. Get a deeper insight into your current and emerging problem loans with our loan management software and expertise.
Get a firsthand look at how Crowe Credit360 for Problem Loans works.
Crowe Knows Banking
Crowe has helped banks streamline and expedite workflows by making better use of available technology, organize job roles for better efficiency and customer service, redefine performance metrics and incentives so they support the institution's long-term strategy, and transform the operational structure to be more responsive and effective.
Fundamentally, we focus on helping banks address complex data and analysis challenges, effectively manage their credit portfolios, and organize their processes for optimal efficiency.
We draw on our wide-ranging experience, banking expertise, and independent perspective to help you gain new insights into industry best practices while offering practical solutions to address your specific needs to help you achieve higher performance.
By Ryan Plourde, Crowe, a Microsoft Dynamics 365 Gold Partner
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