Risk Rating

The common language of credit

Since the recession, financial institutions have had to grapple with three, main issues: restoring the strength of their balance sheet, a perennially low-rate environment and heightened scrutiny from regulators and auditors. With balance sheets returning to strength after years of recession and restricted lending, banks and credit unions have largely dealt with the first challenge; it is low-interest rates and increased regulation that show no sign of letting up.

This paper explains how having a consistently applied risk rating system can help overcome these challenge by improving loan pricing accuracy, better informing loan administration and enhancing accuracy of the ALLL.

Download to learn:

  • Why risk rating procedures are so important
  • What criteria should be included in a comprehensive risk rating system
  • How risk ratings affect other internal processes

Download the Whitepaper