Is your bank ready for a wave of problem loans that might be coming?
You protect your portfolio and provide strategies to your borrowers amid a volatile market, but you might need to take to further actions to alleviate any potential losses.
Our combination of credit risk expertise and industry-specific technology solutions can help your bank ride a wave of problem loans to calmer seas.
Overlooked problem loans can lead to bigger problems for your bank
But you might not know exactly when they’ll come or where they’ll emerge. And a problem can look different for different customers.
Depending on where they’re based and what business they’re in, recovery times will differ. Some borrowers might not recover for a while or at all.
We can help you get a better view of your current problem loans and loans that could become a problem in the future.
Keep a close watch on your credit portfolio to get ahead of problem loans
When it comes to managing problem loans, knowledge is power. Implementing the right technologies and processes can give you a current, accurate view of your borrowers.
We provide analytics, automation, and specialized guidance in areas like loan review, reserve calculation, and valuation to help you manage problem loans.
Empower your credit teams with expertise and automation
We offer data-rich, efficient solutions and services designed to help you manage your credit portfolio risk.
Take a proactive approach to problem loan management
Banks need to proactively identify, classify, and manage problem loans on a regular basis. Our three-phase framework – which requires putting the right people, policies, and technologies in place – can help you do that.
Identification
Get started by figuring out where problem loans are emerging in your credit portfolio. Take these actions to get a better view.
- Loan review
- Covenant testing
- Portfolio analytics
- Delinquencies review
- Annual review
- Financial statement receipt and review
- Loan modification tracking
Assessment & monitoring
Once you've identified problem loans in your portfolio, you'll need to assess and monitor them in order to understand your options for mitigating losses.
- Loan documentation review
- Borrower conversations
- Site visits
- Financial condition assessment
- Collateral valuation
- Security perfection assessment
- Loan modification tracking
- Pre-workout agreement
- Technology capabilities
Strategy
You've identified problem loans and carried out initial assessments. Now it's time to determine the right strategy for achieving the best outcome for your bank and your borrowers.
- Bankruptcy
- Exit (borrower-driven or loan sale)
- Restructure/return to lending group
- Foreclosure, other real estate owned, liquidation
This video provides a glimpse into our inclusion principles and why our people believe that "I can be me at Crowe."
Read about FDIC annual risk review; SEC swears in new chair; PCAOB holds Investor Advisory Group meeting; and more.
The FASB has made key decisions about the accounting for purchased financial assets and instructed its staff to draft a final standard. Learn more.
This video provides a glimpse into our inclusion principles and why our people believe that "I can be me at Crowe."
Read about FDIC annual risk review; SEC swears in new chair; PCAOB holds Investor Advisory Group meeting; and more.
The FASB has made key decisions about the accounting for purchased financial assets and instructed its staff to draft a final standard. Learn more.
Work with us
Take on problem loans before they take you by surprise.
Imagine knowing where the next problem loan is in your portfolio – and how to get it back on track. Tackle your problem loans before they get out of hand. Our problem loan management consultants and solutions can help you understand what might be coming.
