Loan Stress Testing for the Credit Analyst
- Unlimited and shareable access
two business days after live streaming
- Available on desktop, mobile & tablet devices 24/7
- Take-away toolkit
- Ability to download webinar video
- Presenter's contact info for questions
Stress tested? Not you, your bank’s transactions!
- 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.
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
- Attendance certificate provided to self-report CE credits.