The loan review process is critical to the success of any community bank. This process must be structured and requires policies and procedures to ensure timely identification of problem credits, asset quality, and accuracy. The process must also include well-defined classification guidelines to ensure consistent loan ratings and the accounting for the allowance for loan and lease losses must comply with generally accepted accounting principles. This fast-paced course will challenge your understanding of credit review in today's banking environment.
We will also discuss practical methods for implementing CECL in a section titled "No More Theory: Let's Talk About Calculating CECL at a Community Bank"
Learning objectives include:
- Creating an effective loan review function for your bank.
- Performing accurate credit analysis.
- Improving your bank's loan presentations.
- Evaluating the adequacy of the bank's allowance for loan and lease losses, including understanding the computation of historical loss rates.
- Calculating the specific reserves needed for impaired loans.
- Dealing with the special challenges surrounding the evaluation of commercial real estate loans.
- Recognizing troubled debt restructurings and when to place a loan into non-accrual status.