Banks have traditionally relied on historical credit performance as a good predictor of future portfolio credit quality. Yet, history suggests prior credit performance is a very poor predictor of future credit performance. Many banks enjoyed historically good portfolio credit performance from 2002 to 2007 only to experience significant credit problems from 2008 to 2012 and several of those banks failed. What other indicators might have been better predictors of future credit performance?
This loan webinar will introduce tools which have been proven to be much better predictors of future credit performance. Participants will have the opportunity to assess the vulnerability of their bank to potential volatility in portfolio credit performance.
Institution’s risk appetite, tolerance for risk and risk culture
Strategic risk management
Three Deadly Sins of Portfolio Management
Poor distribution of asset quality ratings
Excessive exposure to higher risk types of lending
Excessive portfolio concentrations
Institution’s risk profile
Risk rating framework
Industry/types of lending risk assessment
Identifying potential problem industries/borrowers
Industry trends potentially impacting portfolio credit quality and earnings
Who Should Attend:
Audit, Business and Commercial Banking, Executive C-Suite, Lending and Credit, Regulatory Compliance, Retail and Branch Banking
If you are having issues with registering online, please contact CBAO's Education & Training Coordinator, Lianne Simeone, (614) 610-1877.