This is a 90-minute webinar.
12:00 pm – 1:30 pm PT
1:00 pm – 2:30 pm MT
2:00 pm – 3:30 pm CT
3:00 pm – 4:30 pm ET
Stress tested? Not you, your bank’s transactions! Although credit analysts work in the background, they play an extremely crucial role in identifying, measuring, and monitoring credit risk. Stress testing is one tool they can use. This in-depth webinar will explain transaction-level stress testing for both commercial non-real estate and commercial real estate loans.
AFTER THIS WEBINAR YOU’LL BE ABLE TO:
- Recognize the need for stress testing at the borrower level
- Determine which factors (based on loan type) should be considered in stressing a borrower’s repayment ability for both commercial real estate and commercial and industrial loans
- Understand the impact of stressed cash flow on both repayment ability and commercial real estate value
- Distinguish between stress testing based on predetermined factors and the break-even point for individual borrowing entities
- Describe the impact of borrower stress testing within a loan presentation and how the stress test impacts loan decisioning and risk rating
Credit analysts are charged with identifying, measuring, and monitoring credit risk in any given transaction. An analyst must understand the borrower’s sustainable repayment ability, including both primary and secondary repayment sources. Repayment ability in a “normal” or positive market condition can be relatively easy to determine and used as a basis for the loan decision and risk rating. However, market conditions are not always favorable and adverse conditions can arise relatively quickly (as in 2020). Credit analysts should apply factors which reflect the impact of an adverse market on a borrower’s primary and secondary repayment sources. This presentation will provide insight for credit professionals regarding transaction-level stress testing, including impact to operating income, guarantor support, and collateral, and will include considerations for both commercial non-real estate and commercial real estate loans.
Attendance certificate provided to self-report CE credits.
WHO SHOULD ATTEND?
This informative session is best suited for commercial lending personnel, such as loan officers, credit analysts, and others responsible for identification and ongoing monitoring of credit risk.
- Employee training log
- Interactive quiz
NOTE: All materials are subject to copyright. Transmission, retransmission, or republishing of any webinar to other institutions or those not employed by your financial institution is prohibited. Print materials may be copied for eligible participants only.