Regulator Update for the Credit Analyst

Date:

Oct 20, 2020

3:00 pm – 4:30 pm EST
(90-minute webinar – recording also available)

Credit analysts must understand current regulatory expectations and concerns.  Before the onset of COVID-19, asset quality was generally sound.  Now regulators are closely watching credit concentrations and weakening underwriting.  This webinar will provide insight on those issues and more and on how to prepare for your next safety and soundness exam.  Is everything ship shape?

WEBINAR DETAILS

Prior to the onset of COVID-19, asset quality was generally sound industrywide. However, concerns over deteriorating underwriting standards and credit concentrations continue to attract regulatory attention, accounting for a significant share of matters requiring attention (MRAs) and matters requiring board attention (MRBAs). As the impacts of COVID-19 continue to unfold, it is imperative that credit personnel review policy, procedures, and practices to limit the potential decline in asset quality.

CAMELS ratings are now forward-looking. Therefore, historically low delinquencies and charge-offs will no longer automatically earn an institution a “1" rating in asset quality. Financial institutions are expected to base credit analysis processes on the complexity of each credit and the risk profile of each institution.

Financial regulators will evaluate the quality and depth of your institution’s credit analysis, including the awareness of existing or emerging risk concerns; stressing for an uncertain future; tying current and new underwriting to the institution’s risk appetite statement; and adequacy of post-funding monitoring and analysis.