Assessing a bank’s culture is not an easy task, but there clearly is an increased emphasis on culture that is part of the regulators' broader focus on “heightened standards.” Learn what it takes to have a strong credit culture. Read about these 10 credit culture factors to assess your institution's credit culture.
Types of Financial Model - Financial Modeling by EduCBAeduCBA
https://www.educorporatebridge.com/financial-modeling/types-of-financial-model/
Learn the different types of Financial model like DCF Model, Comparative Company Analysis model, Sum-of-the-parts model, LBO Model, M&A model and Option Pricing Model
Types of Financial Model - Financial Modeling by EduCBAeduCBA
https://www.educorporatebridge.com/financial-modeling/types-of-financial-model/
Learn the different types of Financial model like DCF Model, Comparative Company Analysis model, Sum-of-the-parts model, LBO Model, M&A model and Option Pricing Model
This presentation covers the basics of Dividend Discount Model (DDM). Firstly, fundamental formula for valuing a stock using DDM is discussed. After that, 3 cases i.e DDM for zero growth, constant growth, and variable growth stocks, are discussed.
We cannot reduce market risks or systematic risks but we can have a measure of these risks with the help of beta.
With the help of beta we can approximately tell how much a particular stock will move if we know how much the whole stock market is going to move.
This presentations chalks out in detail information about ALM in Indian Bank. It starts with the basics of Balance sheet; applicability of ALM in real life; Evolution and then starts with main topics of ALM like structured statement; Liquidity risk, its management; currency risk and finally ends with Interest Risk management.
Links to Video’s in the ppt
Balance Sheet
http://www.investopedia.com/terms/b/balancesheet.asp
NII/NIM
http://www.investopedia.com/terms/n/netinterestmargin.asp
www.abhijeetdeshmukh.com
The Rise and Risks of Lending to Non-Depository Financial InstitutionsColleen Beck-Domanico
This excerpt from the RMA Credit Risk Council's “2017 Industry Insights: Perspectives from the Front Line” talks about the risks of lending to non-depository financial institutions. Those credit risks can be substantial and can arise from various factors.
Ensuring capital availability for entrepreneurs is consistently referred to by business owners as one of the key components of any successful banking relationship. If you lend to small businesses, you should know about the competitive landscape, including alternative lenders, and the 5 regulatory items you should monitor closely.
This presentation covers the basics of Dividend Discount Model (DDM). Firstly, fundamental formula for valuing a stock using DDM is discussed. After that, 3 cases i.e DDM for zero growth, constant growth, and variable growth stocks, are discussed.
We cannot reduce market risks or systematic risks but we can have a measure of these risks with the help of beta.
With the help of beta we can approximately tell how much a particular stock will move if we know how much the whole stock market is going to move.
This presentations chalks out in detail information about ALM in Indian Bank. It starts with the basics of Balance sheet; applicability of ALM in real life; Evolution and then starts with main topics of ALM like structured statement; Liquidity risk, its management; currency risk and finally ends with Interest Risk management.
Links to Video’s in the ppt
Balance Sheet
http://www.investopedia.com/terms/b/balancesheet.asp
NII/NIM
http://www.investopedia.com/terms/n/netinterestmargin.asp
www.abhijeetdeshmukh.com
The Rise and Risks of Lending to Non-Depository Financial InstitutionsColleen Beck-Domanico
This excerpt from the RMA Credit Risk Council's “2017 Industry Insights: Perspectives from the Front Line” talks about the risks of lending to non-depository financial institutions. Those credit risks can be substantial and can arise from various factors.
Ensuring capital availability for entrepreneurs is consistently referred to by business owners as one of the key components of any successful banking relationship. If you lend to small businesses, you should know about the competitive landscape, including alternative lenders, and the 5 regulatory items you should monitor closely.
Before the financial crisis, the primary role of the bank underwriter was to make good decisions in deploying the bank’s resources to help loan applicants achieve their goals. Learn how this role in changing in the industry.
Governance enables your institution to effectively manage its risk-taking activities. Learn about the four essential capabilities for building strong risk governance and the eight benefits strong risk governance yields.
This excerpt from RMA's Credit Risk Council's “2017 Industry Insights: Perspectives from the Front Line” talks about the challenges ahead and provides 8 tips on how risk managers can navigate today's banking environment.
Banks hold as much as 33% of the overall multi-family debt in this country. Learn how to survive the inevitable slowdown. Get seven tips on measure you can take to prepare for a multi-family housing crisis.
Risk management is an integral part of business management. This set of principles was developed by the industry for the industry. They have been drafted to make them so practical that they will resonate with any financial organization.
As this credit cycle continues, maintaining perspective and holding the line have become increasingly difficult for risk managers. This excerpt from the RMA Credit Risk Council’s “2017 Industry Insights: Perspectives from the Front Line,” offers several insights into how risk managers can strike the right balance.
Potential misconduct fines are now one of banking’s biggest risks. But now that it can be a large part of operational risk—sometimes, in and of itself, ranking alongside credit and market risk—it’s time to start measuring it. Read this to find out how.
How to Instill Ethics in Commercial Lending: Understanding Due DiligenceColleen Beck-Domanico
In order to avoid taking on dangerous loans, your approval staff must be thorough and detailed in their analysis of potential relationships. Due diligence is the process of gathering information needed to analyze a borrower's creditworthiness. This presentation provides an overview of the due diligence process, plus tips to ensure that the process is ethical.
A good risk appetite implementation process leverages existing practices, represents the aggregate view of risk across all lines of business and risk categories, and creates a dynamic structure that allows for internal and external changes in risk. Learn more about the 10 aspects of a robust and evolving risk appetite framework in this excerpt from the Credit Risk Management Audio Conference Series.
Safeguard your lending program by learning about the 8 steps of credit risk management. Learn about nonfinancial risks, structuring the loan, and more.
A new emphasis on enterprise risk management from regulators has heightened awareness among bankers to get educated and adopt these best practices at their institution. In response to this increased focus, the RMA ERM Council developed the ERM framework and associated competencies, which became the foundation for a series of highly practical workbooks for implementing effective ERM.
Portfolios with excessive concentrations of credit are more challenged to withstand a downturn. Planning now allows time to make adjustments to portfolios in order to be able to weather the next financial crisis. Learn how to prepare.
Future lending strategies will need to account for CRE risks that result from both an expanding economy and recession. View the 5 biggest CRE challenges according to the “2017 Industry Insights: Perspectives from the Front Line” by RMA’s Credit Risk Council
What You Really Need to Know about Commercial Real Estate UnderwritingColleen Beck-Domanico
Prudent real estate underwriting uses quantitative analysis. However, real estate math isn't just a black‐and‐white exercise, nor is it simple formula lending. Many qualitative judgments feed into your estimates of property cash flow, coverage, and value that come from quantitative analysis. Your analysis should be completed in the context of the qualitative credit risk assessment. Doing so will avoid over‐advancing on potentially weak property cash flow streams that will jeopardize repayment prospects and bank portfolio quality. This presentation looks at quantitative analysis and integrating qualitative factors; underwriting guidelines; regulatory guidance; and value and cash flow analyses.
The Talent Gap: Three Processes Bankers Must Embrace to Safeguard Risk Manage...Colleen Beck-Domanico
Describes employment trends in banking and the three essential processes bankers should follow to ensure future risk management continuity in their banks.
It is important to consider the emerging risks surrounding commercial lending and commercial real estate lending. What stage are we in of this current economic cycle? The answer is uncertain, but it is important to consider the emerging risks surrounding commercial lending and CRE lending.
Similar to 10 Components of a Robust Credit Culture (20)
Online learning is more important than ever, especially during the Covid-19 pandemic. Online training gives learners the ability to work around their schedules, putting them in control. It’s cost-effective and easily accessible. View this slide deck to learn what to look for in a good online training provider.
Heading into 2020, The Risk Management Association is focusing on eight risks. Learn about the top risks the financial services industry faces and how you can address them.
Financial services face both physical and transitional risks regarding climate change. No matter what you believe to be true about climate science, the reality is that your bank must address it.
Credit Risk Certified (CRC) is the premier designation for the commercial credit risk professional. This credential distinguishes the certification holder from all others in the field. It validates your credit risk skills and establishes your exemplary achievement as a Credit Risk Certified recipient. Earning your CRC demonstrates that you recognize the industry’s best credit practices. Learn more about Credit Risk Certification from The Risk Management Association.
How has the risk manager evolved to meet the needs of the banking industry? This slide deck takes a look at how the position has evolved and what skills should you anticipate needing in the future to compose the skill profile of the next decade’s agile risk manager.
Many community banks have concerns over the implementation of the CECL standard. Learn about the concerns bankers have and the five actions you should take today.
What is Blockchain and How Can It Change the Game for Financial Institutions?Colleen Beck-Domanico
Blockchain has grown in popularity for a variety of applications. Learn about the benefits and risks of incorporating this technology into your payments space
The new Bank Secrecy Act (BSA) rule codifies existing regulatory expectations regarding customer due diligence and imposes a new requirement on covered financial institutions. Learn about the new requirement to identify and verify the natural persons behind institutions’ legal entity customers.
As of January 1, 2018, lenders subject to the reporting requirements of the Home Mortgage Disclosure Act were required to begin reporting specific new information in accordance with the Consumer Financial Protection Bureau’s final rule issued in October 2015. Find out what you need to know in the areas of data collection, compliance tool and assistance, ethnicity and race data, Regulation B, privacy issues, and best practices
Appraisals continue to be a very important and required valuation tool for both owner-occupied and investor real estate transactions. This excerpt from the RMA Credit Risk Council’s “2017 Industry Insights: Perspectives from the Front Line,” talks about three appraisal issues that could make or break a loan.
Credit data management and governance remains one of the critical challenges facing risk managers. This excerpt from the RMA Credit Risk Council’s “2017 Industry Insights: Perspectives from the Front Line,” offers several insights into data governance.
Get Credit risk considerations, including advantages, risks, funding needs, and more, for the three most-researched hospitality industries on RMA’s eStatement Studies. Industries are Hotels (except Casino Hotels) and Motels, Full-Service Restaurants, and Limited-Service Restaurants (Fast Food).
How to Make Your Specialty Services Lending Rock: Credit Considerations for 4...Colleen Beck-Domanico
Make better specialty services lending decisions. This slide deck discusses credit risk considerations for the four most-researched specialty services industries—dental practices, physician practices, HVAC, and new car dealers—on eStatement Studies.
This slide deck discusses real estate lending credit considerations including advantages, risks, funding needs, and more for the three most-researched real estate industries on RMA's eStatement Studies.
The RMA Credit Risk Council’s 2016 Industry Insights discusses the rise of aggressive indirect auto underwriting and actions you can take now to lower your risks.
Home equity lines of credits (HELOCs) have distinct risks due to their product structure. Learn about the risks you should be aware of during the HELOC final draw periods. This information is part of the RMA Credit Risk Council's Industry Insights.
Get 7 tips from the RMA Credit Risk Council's "2016 Industry Insights" on how to prepare for the implementation of the Current Estimated Credit Loss (CECL), which is expected to be in force in 2019. Learn what you should be doing now to prepare.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
Resume
• Real GDP growth slowed down due to problems with access to electricity caused by the destruction of manoeuvrable electricity generation by Russian drones and missiles.
• Exports and imports continued growing due to better logistics through the Ukrainian sea corridor and road. Polish farmers and drivers stopped blocking borders at the end of April.
• In April, both the Tax and Customs Services over-executed the revenue plan. Moreover, the NBU transferred twice the planned profit to the budget.
• The European side approved the Ukraine Plan, which the government adopted to determine indicators for the Ukraine Facility. That approval will allow Ukraine to receive a EUR 1.9 bn loan from the EU in May. At the same time, the EU provided Ukraine with a EUR 1.5 bn loan in April, as the government fulfilled five indicators under the Ukraine Plan.
• The USA has finally approved an aid package for Ukraine, which includes USD 7.8 bn of budget support; however, the conditions and timing of the assistance are still unknown.
• As in March, annual consumer inflation amounted to 3.2% yoy in April.
• At the April monetary policy meeting, the NBU again reduced the key policy rate from 14.5% to 13.5% per annum.
• Over the past four weeks, the hryvnia exchange rate has stabilized in the UAH 39-40 per USD range.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
NO1 Uk Black Magic Specialist Expert In Sahiwal, Okara, Hafizabad, Mandi Bah...Amil Baba Dawood bangali
Contact with Dawood Bhai Just call on +92322-6382012 and we'll help you. We'll solve all your problems within 12 to 24 hours and with 101% guarantee and with astrology systematic. If you want to take any personal or professional advice then also you can call us on +92322-6382012 , ONLINE LOVE PROBLEM & Other all types of Daily Life Problem's.Then CALL or WHATSAPP us on +92322-6382012 and Get all these problems solutions here by Amil Baba DAWOOD BANGALI
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how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
#pi network
#pi coins
#money
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Even tho Pi network is not listed on any exchange yet.
Buying/Selling or investing in pi network coins is highly possible through the help of vendors. You can buy from vendors[ buy directly from the pi network miners and resell it]. I will leave the telegram contact of my personal vendor.
@Pi_vendor_247
1. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
1
JOIN. ENGAGE. LEAD.
COMPONENTS OF A
ROBUST CREDIT CULTURE
By the RMA Credit Risk Council
10
2. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
2
JOIN. ENGAGE. LEAD.
IMPORTANCE OF A
STRONG CREDIT CULTURE
There has been much
regulatory focus over the past
year on the importance of
conduct and culture in financial
institutions.
3. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
3
JOIN. ENGAGE. LEAD.
IMPORTANCE OF A
STRONG CREDIT CULTURE (CONT.)
• In an op-ed that appeared in The Clearing House’s
quarterly journal in late 2014, Comptroller of
the Currency Thomas Curry wrote:
“Business practices that have caused
problems were made possible by
weaknesses in the organization’s
risk management and risk culture.”
4. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
4
JOIN. ENGAGE. LEAD.
IMPORTANCE OF A
STRONG CREDIT CULTURE (CONT.)
While Curry and other regulators
have admitted that assessing a
bank’s culture is not an easy
task, there clearly is an
increased emphasis on culture
that is part of the broader focus
on “heightened standards.”
5. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
5
JOIN. ENGAGE. LEAD.
IMPORTANCE OF A
STRONG CREDIT CULTURE (CONT.)
• Curry addressed this culture concern and its relation to
heightened standards at a recent regulatory symposium
sponsored by American Banker:
“When I use the word culture
it’s really the establishment
of standards and the
enforcement of those standards.”
6. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
6
JOIN. ENGAGE. LEAD.
IMPORTANCE OF A
STRONG CREDIT CULTURE (CONT.)
• Lest the spotlight on culture be seen as limited only to large
banks, Curry set the record straight in his op-ed article.
Indeed, we have seen improper business
practices and deficient risk management systems
at community banks. But those smaller institutions
don’t get the kind of public attention
that hurts the industry’s reputation, nor do
they have the same kind of outsized impact
upon the economy as large banks.
7. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
7
JOIN. ENGAGE. LEAD.
IMPORTANCE OF A
STRONG CREDIT CULTURE (CONT.)
While many of the public comments
by regulators have focused more
broadly on risk culture,
there certainly is an implied
expectation that banks will have a
strong credit culture.
8. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
8
JOIN. ENGAGE. LEAD.
10 KEY COMPONENTS
OF A ROBUST CREDIT CULTURE
10 key
components
that should
be evident in
every bank,
regardless of
size:
• Credit culture starts at the top.
• Everybody owns risk.
• Systems and processes must be robust.
• There must be room for good judgment.
• There is a commitment to training and
education.
• Incentive systems need a risk
component.
• Core competencies should be the focus.
• The credit message is reinforced.
• Line of business growth is managed
prudently.
• Policy and limits are followed.
9. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
9
JOIN. ENGAGE. LEAD.
1. CREDIT CULTURE STARTS AT THE TOP
The CEO and executive management set the tone for a
strong credit culture.
• They frequently talk about the importance of
managing lending activity within the bank’s
credit appetite.
• They defer to the risk organization for setting
credit risk standards.
• This support is evident through both words and
deeds.
10. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
10
JOIN. ENGAGE. LEAD.
2. EVERYBODY OWNS RISK
There must be a strong reinforcement that everyone involved
in the lending process owns risk management.
Credit risk is not just the responsibility of those in
underwriting, adjudication, and loan services.
Those in client-facing roles must also take an active
role in supporting the bank’s credit culture internally
and externally.
11. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
11
JOIN. ENGAGE. LEAD.
3. SYSTEMS AND PROCESSES MUST BE ROBUST
• A strong credit culture will be
evidenced by systems and
processes that support excellent
execution and servicing.
• Strong controls must be in place
to ensure proper measurement,
inspection, and accountability.
12. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
12
JOIN. ENGAGE. LEAD.
4. THERE MUST BE ROOM FOR GOOD JUDGMENT
While controls must be strong, a sound
credit culture leaves plenty of room for
good judgment by experienced bankers.
A credit process that is too driven by
models and rules can actually lead to
undesirable outcomes.
13. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
13
JOIN. ENGAGE. LEAD.
5. THERE IS A COMMITMENT TO
TRAINING AND EDUCATION.
Everyone involved in the lending
process should receive regular
continuing education around
underwriting skills, products, laws
and regulations, and bank policy.
14. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
14
JOIN. ENGAGE. LEAD.
6. INCENTIVE SYSTEMS NEED
A RISK COMPONENT
Credit officers should not be
the only ones with a risk
component in their respective
incentive plans.
Those in client-facing roles
should have credit quality
measures included to augment
revenue goals.
15. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
15
JOIN. ENGAGE. LEAD.
7. FOCUS ON CORE COMPETENCIES
A bank that
tries to be all
things to all
borrowers
will find itself
in trouble
when times
get tough.
• Ensure that the bank focuses on
lending segments of core
competency, staying away from
areas that are not well
understood.
16. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
16
JOIN. ENGAGE. LEAD.
8. THE CREDIT MESSAGE IS REINFORCED
A solid credit culture requires
persistent and consistent
communication of the credit message.
Those in credit and sales leadership
roles must regularly emphasize the
bank’s credit appetite to avoid
potentially bad lending outcomes.
17. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
17
JOIN. ENGAGE. LEAD.
9. LINE OF BUSINESS GROWTH
IS MANAGED PRUDENTLY
A strong credit culture includes a
robust portfolio management
process that ensures proper
diversification and granularity.
18. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
18
JOIN. ENGAGE. LEAD.
10. POLICY AND LIMITS ARE FOLLOWED
• Exceptions to policy are
sometimes made, but they are
well documented and tracked.
Exceptions
• Limits are followed very closely
and not compromised, even
when revenue opportunities will
be missed.
Limits
19. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
19
JOIN. ENGAGE. LEAD.
The Credit Risk Council supports
professionals who are responsible for
establishing, maintaining, or carrying out
credit risk management policies.
The council focuses on funded and off-
balance sheet risk management, including
capital markets activity, and other forms of
credit intermediation and risk mitigation.
About RMA’s Credit Risk Council
20. Enterprise Risk · Credit Risk · Market Risk · Operational Risk · Regulatory Compliance · Securities Lending
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