Establish a Clear and Measurable Loan Grading System
This session by Roy Johnson will define the required loan classification category utilized by banking regulators. They expect community banks to have credit risk management systems that produce accurate and timely risk ratings. Banking regulators consider accurate classification of credit among its top supervisory priorities. Credit ratings are an approximation of the loan quality and the potential for complete repayment. They are based on the financial institution’s underwriting standards. If a financial institution's underwriting standards are weak, the credit ratings will not properly reflect in the loan portfolio. The standards act as signals that indicate the general quality of individual loans and their loan portfolio. Before individual credit reviews can be performed, criteria for determining the quality of a loan must be established.
Roy will also use case studies, slides, problem-solving skills, online exams, charts and step-by-step analysis to certain occurrences from charts and graphs.
Establishing a clear and measurable loan grading system
Recent developments in risk rating systems
Expectations of risk rating system
Who should assign credit ratings
Credit risk rating criteria
Review cases for the purpose of assigning the proper risk grade
Five key attributes that should be present for a grading system to be effective
Who should attend:
Beginners and professionals in banking, credit and financial services industry, followed by mid-management and upper-management.
Loan officers in banks and real estate investment companies can also have a perceptive of the process, along with risk management teams in banks and financial institutions.
Roy Johnson brings a wealth of knowledge to the banking sector as his career spans from his beginning as a Loan Associate all the way to becoming a Vice President of Commercial lending for a Leading Regional Bank in the Southeast. He possesses a combination of corporate and Non Profit experience whi...
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