Seven Habits of Effective Credit Administration in Commercial Banks
|Date / Time:
Imagine finding yourself suddenly in a senior credit administration position at your bank due to required personnel changes as a result of frequent credit losses; Or, your bank's credit administration seems disconnected, un-organized and free flowing and lacks effective management oversight; Or you are in a lending position and the credit administration function at your bank fails to provide structure, guidance and leadership.
If any of these scenarios point to you or your financial institution, this course will address the factors you need to know to make a positive difference in the credit administration at your bank.
Specifically, this course is intended to provide guidance on how to develop and maintain a Credit Administration function that will provide guidance to anyone involved in the credit function of the bank and to insure safeguards are in place to manage the bank's loan portfolio in a safe and sound manner. This principle is paramount especially in this economic environment and close scrutiny being applied by the regulatory authorities.
There are seven distinct characteristics well managed and successful banks have in their Credit Administration area. This course will evaluate the reasoning and requirements for each of these characteristics so that the participant can begin the process of developing such a culture within their respective organization.
The Seven Characteristics are as Follows:
- Well Defined Credit Culture Established and Supported by:
- Highly Effective Risk Assessment and Credit Underwriting System by:
- Choosing the right personnel to be Credit Analysts, Lenders or Loan Administrators
- Knowing how to balance Risk and Rewards through proper credit, ratio and cash flow analysis
- Knowing how to report risk assessment by writing effective credit memoranda
- Highly Effective Credit Committee that:
- Considers all pertinent information
- Allows members to express their opinion "freely"
- Records Minutes that matter
- Utilize Credit Risk Rating to Identify Risk in the Loan Portfolio by:
- Clearly defining credit grades and applying them to various types of borrowers
- Utilizing a clear, objective and measurable loan grading system
- Loan Documentation Procedures that will:
- Identify the Borrower's legal structure
- Identify, value and properly classify the collateral (emphasizing appraisal reviews)
- Evidence the debt outstanding
- Attach the bank's security interest in the collateral
- Perfect the bank's lien position in the collateral
- Effective Loan Portfolio Management by:
- Defining the expectations of loan officers in the management of their loan portfolio
- Using Loan Agreements, Covenant Compliance Reports and other monitoring tools to manage the loan portfolio
- Adopting prudent commercial real estate loan workout strategies for problem loans
- Calculating and Maintaining an Adequate Allowance for Loans and Lease Losses
- Reviewing and Documenting the ALLL methodology
At the end of this session, the participant will have a good road map to build and manage an effective credit administration area of the bank and to satisfy regulators' requirement to operating a safe and sound bank from a credit risk perspective.
Who Should Attend
- CEOs &Presidents
- Chief or Senior Credit Officers
- Chief or Senior Loan Officers
- Commercial Loan Officers
- Bank Accountants
- Branch Managers
- Consumer Loan Officers
- Loan Review Personnel
- Consumer Lenders
Jeffery W. Johnson started his career with SunTrust Bank in Atlanta as a Management Trainee and progressed to Vice President and Senior Lender of SouthTrust Bank and Senior Vice President and Commercial Banking Division Manager for Citizens Trust Bank of Atlanta.
Mr. Johnson is now a training professional in the financial industry by leading various seminars covering important topics relating to issues in financial institutions. He teaches actively for fifteen state banking associations in the United States, Risk Management Association (RMA) and individual financial institutions nationwide. He co-authored a training course entitled "Lending to Service and Other Professional Organizations" for RMA in 2001.
Mr. Johnson earned a B.A. Degree in Accounting from Morehouse College in Atlanta; a MBA in Finance from John Carroll University in University Heights, Ohio; Banking diploma from Prochnow School of Banking at the University of Wisconsin and a Graduate Certificate in Bank Management from the Wharton School of Business at the University of Pennsylvania.
Cannot Attend The Live Presentation?
This presentation is also available in a recorded format, in On-Demand Or CD versions, as shown in the pricing options below.
|About Webcasts / Audio Conferences / Podcasts:|
Webcasts, audio conferences, and podcasts are presentations that you
attend via the Internet, phone, or mobile device at a specified date and time for "live" versions, or at your convenience for "recorded" and "On-Demand" versions.
versions are interactive, meaning that participants can ask questions in real time, plus are a very cost-effective form of training because 1) you receive fast, convenient learning without
any out-of-office time; 2) you can invite as many colleagues as you'd like to listen in on a single phone line; 3) you incur no travel expenses; and 4) you and your colleagues are back
at work immediately after the session ends!
And though with recorded versions you do lose the ability to ask questions, you gain the ability to hear the presentation numerous
times and to share it with others in your office.
Handout materials and the phone number for live presentations are made available to you prior to the event via email from the
presenter and from the "MyAccount" link on the menu bar. Copies of the presentations are included with recorded versions.
|Licenses / Designations / Educational Credits:||CEU|
All US States: 2.5
All Canadian Provinces: 2.5
|About The Provider:
||Since 1983 Total Training Solutions has produced dozens of videotapes, CD-Roms, DVD's and web-based training modules. In addition to off-the-shelf products, Total Training Solutions also develops custom training products and consults with financial institutions to develop their own training curriculum.
For timely delivery of training topics, webinars or web conferencing is an unbeatable option. We now offer over 100 live programs per year and you can even purchase the recorded or ondemand session if you are unable to attend the live program.
We have worked exclusively with the financial industry since our founding. Because of this, we understand the needs of training departments in financial institutions and are alert to changes which affect the industry.
Attend the live session with the opportunity to ask questions to the presenter. You also receive a link to the handouts. All registrations for a live event will be given access to the OnDemand recording, at no additional cost, for seven days following the event. This will allow a flexible alternative when last minute conflicts intrude on scheduled events.
CD-Rom includes audio and video of recorded webinar plus hard copy handouts. You will also receive 6 months access to the OnDemand weblink as an added free bonus.
Includes a weblink for unlimited viewing for 6 months after the date of the webinar as well as a link to handouts.
Live + Recorded:
Includes all three options above. Live session, OnDemand Weblink, and CD-Rom plus Hardcopy Handouts.
Live + OnDemand:
Includes two of the options above. Live session and 6 months access to OnDemand Weblink plus link to handouts.
||Contact Us For More Information
||Share on Facebook
Share on Twitter
Share on Google+
Completing The SAR: Line By Line
Writing a New Accounts Procedures Manual
Legal Liabilities When Check Fraud Occurs
Fair Lending and the CFPB in Underwriting, Servicing & Collections
Certified Regulatory Vendor Program Manager
BSA Series: CTR & Exemptions: Reviews, Mergers, Revocations and More
BSA Series: Part I-Growing Your CDD Questionnaire for Onboarding Consumer Accounts
Flood Insurance: Compliance Issues and Enforcement Topics that Continue to Plague Lenders
Home Equity Lines of Credit
Reg E Compliance - Five Best Practices for Handling Disputes
Risks With Power Of Attorney Documents
Understanding Revocable And Irrevocable Trust Documents
Safe Deposit Boxes - The Pitfalls of Vault Security, Disasters and Self-Service Boxes
Writing an Effective Credit Memorandum
Call Report: Lending Schedules for Banks