Effective Loan Review
The business of banking is primarily the business of lending, and lending is fundamentally based on taking risk. The effective management of all types of risk, including the credit risk inherent in making loans, is what allows some banks and credit unions to thrive in times where others fail.
Safe and profitable lending starts with well-defined policies and thorough underwriting practices: the most effective way to avoid a troubled loan is to simply not make it in the first place. However, there will always be risks inherent in the loan portfolio, and effective portfolio management and loan control functions are critical to the overall risk management function of financial institutions.
Watch to Learn:
- What is loan review
- Keys to effective loan review
- Common obstacles in the process