Post Great Recession underwriting is not the same as before. As a small- to mid-sized community bank, underwriting commercial loans in compliance with today’s regulations is a challenge. While regulators say the depth of analysis should be based on the complexity of the credit relationship, they are suggesting that the adequacy of underwriting includes evaluating financial risk, management risk, and business risk (which includes market risk). This risk analysis should include current position and a forward-looking analysis of sustainability (including stress testing). Lastly, the webinar will briefly touch on the fact that there must be an awareness of how new deals fit into the bank’s risk appetite by reviewing the potential impact on risk-based capital, loan loss reserve, concentration limits, and portfolio liquidity.
Part 1 of this series starts with basic small business lending and what credit analysts and underwriters need to know and document – including understanding and reading financial statements. That said, a bank should strive for easy-to-use, timely processes. Although procedures are to be risk-based, they may be streamlined based on perceived risk – but must have consistent application.
Attendance verification for CE credits provided upon request.
WHO SHOULD ATTEND?
This presentation is for beginning, intermediate, and advanced credit skill level staff, including credit analysts, commercial loan underwriters, commercial loan officers, loan review personnel, Loan Committee members, and credit risk management personnel.
If you are having issues with registering online, please contact CBAO's Education & Training Coordinator, Lianne Simeone, (614) 610-1877.