| Basic Scope of a Stern & Associates' Commercial Loan Review |
| • |
Enhanced Risk Management Support from our experts provides what Your Bank Needs To Stay on Top Despite Unfavorable Economic Pressures and Market Trends |
| |
• |
Consider regulatory concerns in the scope of the loan review, e.g. diminished loan quality, CRE concentrations, ALLL and appraisal changes, increased risk management, etc.) |
| |
• |
Evaluate the credit analysis, loan/facility grading and overall underwriting processes in light of Basel II, new stress testing requirements, and other upcoming U.S./International regulations |
| |
• |
Graph credit score distribution for portfolio and analyze results |
| |
• |
Analyze concentrations by NAICS codes and assess risk in light of credit quality and internal controls (e.g. graph CRE exposure and credit scores) |
| |
• |
Gauge whether loan provisions adequately protect against credit risks |
| |
• |
Provide direction for stress testing policies and procedures and stress test priority risks |
| |
• |
Prioritize risk monitoring efforts and weigh overall adequacy of internal controls |
| |
• |
Verify comprehensiveness and usefulness of management reports |
| |
• |
Align policy and procedural updates with emerging regulatory concerns |
| |
• |
Compare and graph returns to loan risks to help management update risk tolerances |
| |
• |
Help develop corrective action plans and assess the effectiveness of action plans for problem loans |
| |
• |
Summarize improvements and weaknesses identified since the prior loan review |
| |
• |
Develop appropriate training tools for lending staff |
