Our ever-changing regulatory environment makes it more important than ever to understand the importance and benefits of loan portfolio management.
Background
Can your financial institution survive the next economic downturn? The recent financial crisis demonstrated how unexpected economic downturns and rapid deterioration in market conditions can significantly harm a bank’s financial condition and economic viability. Additionally, our ever-changing regulatory environment makes it more important than ever to understand the importance and benefits of loan portfolio management.
Agenda
Day 1 (July 23rd Noon-1:30PM ET) will focus on how to create a consistent and objective based risk scoring model that still allows for subjective adjustments. We will highlight significance of leveraging a dual loan grading and underwriting system to monitor your loan portfolio. Our expert will provide practical advice on incorporating the 5 C’s into your loan grade and how to select an appropriate loan grading scale for your institution. You’ll also learn how to forecast out potential ALLL provisions based on the current loan portfolio and growth strategies.
• Regulatory examiners expectations
• Loan grading scales & dual loan grading systems
• Financial statement analysis
• ALLL Impairments & reserve analysis (ASC 450 & 310)
Day 2 (July 24th Noon-1:30PM ET) will showcase how to create and incorporate loan portfolio stress testing system into your Enterprise Risk Management framework. This session will outline the importance and benefits of a stress testing system and show you how to source economic information. Further, our expert will offer advice on creating meaningful stress testing scenarios that align with the new OCC and FDIC guidance on stress testing for community banks under $10 Billion. Lastly we will discuss the importance of keeping your Loan Policy updated and relevant in this ever changing regulatory environment.
• Defining stress testing
• Regulatory examiners expectations
• Sourcing national and local economic information
• Measuring the impact of the stress test
• Automating your Loan Policy
Benefits
Following this session, you’ll be able to:
• Understand what is driving current regulatory environment
• Implement a consistent risk score model that is based on objective and subjective components
• Optimize data sources that can be used for Environmental and Qualitative Factors and Stress Testing
• Forecast out your ALLL reserve provision for two years
• Run your own Loan Portfolio Stress test and understand the capital impacts to your financial institution
• Assess the effectiveness of your current Loan Policy
Who Should Attend
• CEO
• CFO
• Chief Credit Officers
• Senior Lenders
Testimonials
• I will be able to use the information with my clients.
• The speaker presented very useful information. Overall this was a good presentation!