GSB – Credit Risk Management in a Recession
Looking beyond the PPP Loan Program, we need to think and act now to address expected continued weakness in our commercial loan portfolios in this quarantine-impacted economy. This workshop shows you ways to do this with illustrations from real-life credit risk management lessons learned from ‘in the trenches’ during previous recessions.
You will also receive helpful templates and resources to use at your bank. At less than 60 minutes each, these webinars are fast-paced and packed full of practical tips and information.
PART 1 – CREDIT MEMOS
- Do credit memos tend to change or evolve in a recession? Should they?
- What should we require and expect of lenders and analysts: to be sure they have asked the ‘right’ questions, vetted the responses to the extent possible, and factored the borrower’s answers into our recommendations?
- How does a recession change this process?
- How can our credit memos be improved?
PART 2 – LOAN PORTFOLIO TRIAGE & LOAN GRADING
- How do we identify and prioritize borrowers to rank the potential of Loss Given Default (LGD)?
- How can we reduce the vulnerability of our loan grading system (AKA risk ratings, asset quality scores) in a recession. . . does it still adequately measure risk, given falling collateral values and uncontrollable external factors that impact our loan repayment?
- How do we factor industry weakness, when the borrower’s historical financials are still supportive?
PART 3 – USING GOVERNMENT LOAN GUARANTIES
- SBA program update review
- As the PPP Loan Program was short-term relief, how can we help our commercial borrowers long-term, WHILE protecting the bank’s capital?
- What are the ‘rules’ to refinance our own debt into a government-guaranteed facility?
- Actual examples of using SBA guaranties for existing
Targeted Audience: Commercial lenders, credit analysts and small business lender
This 210-minute program will be presented live on: February 14, 2024, 10:00–11:30 a.m. CT
Registration Option: Live presentation $395
Recording available through May 14, 2024