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Using Credit Risk Ratings to Determine Asset Quality Webinar

The “A” in the CAMELS rating system utilized by bank regulators is perhaps one of the most important factors they consider when examining financial institutions. The “A” represents Asset Quality and it is scrutinized extensively when banks are examined. Studies continue to indicate the primary reason why banks failed is due to poor Asset Quality followed closely by poor policies, procedures and management. Asset Quality is so important that it forms the basis of capital requirements assigned by regulators and is viewed by investment community to establish value.

Banks approximates Asset Quality and the potential for complete repayment by utilizing Risk or Credit Ratings. Credit Ratings are based on the financial institution’s underwriting standards. If a financial institution’s underwriting standards are weak, then the Credit Ratings will not reflect the risk in the loan portfolio properly.

Regulators expect community banks to have credit risk management systems that produce accurate and timely risk ratings. They consider accurate classification of credit risk among its top supervisory priorities.

This course is designed to establish or improve the risk rating system within your financial institution.

Covered Topics:

•Underwriting Standards Required to Expose and Establish the proper Credit Risk Rating
•Key Control Attributes Required for the Grading System to be Effective
•Regulatory Classification of Assets
•Areas of Exposure to Consider When Assigning a Risk Rating
•Latest Developments in Rating Credit Risk
•Establishing a Clear and Measurable Method of Assigning Credit Rating that is More Objective and Less Subjective
•Utilizing Credit Risk Rating to Establish and Maintain an Adequate Allowance for Loan and Lease Losses

Who Should Attend?

Senior/Chief Credit Officers, Consumer Loan Officers, Loan Review Officers, Branch Managers, Commercial Loan Officers, Credit Analysts, Compliance Officers, Senior Loan Officers

Instructor:  Jeffery W. Johnson started his career with SunTrust Bank in Atlanta as a Management Trainee and progressed to Vice President and Senior Lender of SouthTrust Bank and Senior Vice President and Commercial Banking Division Manager for Citizens Trust Bank of Atlanta.  Most of his career has been spent in Credit Administration, Lending, Business Development, Loan Review, Management and Training & Development. He has managed loan portfolios representing a cross section of loan types including: Large Corporate, High Net Worth Individual, Middle Market Companies, Small Business, Real Estate and Non-Profit Organizations.

Schedule and Registration Information

Choose the delivery type that best suits your needs.  Tuition includes textbook (if applicable).
Webinar times are EST.  All other class times are local time.

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