Taking the Stimulus Out of Credit Analysis

Regulators have signaled that examiners will pay close attention to how lenders are managing credit risk as banks and credit unions move on from multiple stimulus packages and increased loan modifications arising from the pandemic. Given the scrutiny on underwriting practices, as well as the interest rate environment and increased digitalization by many financial institutions, it’s important to examine common processes like credit analysis.

During this webinar, we will discuss the impacts of the pandemic on assigning credit risk to different segments of your loan portfolio. We will also review the impact of recent financials in multiyear spreads and benchmarks used for comparative ratio analysis at your financial institution.

You will learn: 

• Best practices for assigning credit risk post-pandemic
• When to use global cash flow analysis in your underwriting to identify COVID-related impacts on borrower financials
• How to utilize and view financials from the past 2 years in credit analysis when looking at both new loans and renewals