loan review

Loan losses are potentially catastrophic to a bank.  Our loan review services are designed to provide for the independent review of loan relationships in order to identify and monitor abnormal risk.  We evaluate the overall quality of your loan portfolio – including the identification, measurement, and root-cause analysis of loan quality concerns.  We also evaluate your monitoring processes, including the use of a revolving “watch list” and loan grading systems.  The key hallmarks of an effective loan review program include:

• Proper staffing by technically competent personnel
• Use of a well-designed approach and written loan review instructions
• Written policies approved, at least annually, by the board of directors
• Proper allocation of resources and authority to freely perform reviews
• Independence through a direct reporting relationship with the board of directors
• Intensity and persistence on the part of loan review personnel and proper levels of cooperation and assistance on the part of lending personnel
• Support by a comprehensive loan grading system and management watch list program
• Coverage of all loans and all aspects of the lending process
• An appropriate methodology for determining the Allowance for Loan Loss Reserves
• Automated software to enhance the efficiency and effectiveness of the loan review process