Credit Analyst Series: Loan Stress Testing for the Credit Analyst
Thursday, May 6, 2021
3:00 pm – 4:30 pm Eastern
Stress tested? Not you, your bank’s transactions! Although credit analysts work in the background, they play an extremely crucial role in identifying, measuring, and monitoring credit risk. Stress testing is one tool they can use. This in-depth webinar will explain transaction-level stress testing for both commercial non-real estate and commercial real estate loans.
AFTER THIS WEBINAR YOU’LL BE ABLE TO:
- 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
Aaron Lewis, Young & Associates, Inc.
Aaron Lewis is a senior consultant at Young & Associates, Inc. With over 15 years in the banking industry, his expertise is now dedicated to the lending division of Young & Associates where he assists financial institutions with loan, ALLL, policy, and credit-process and compliance reviews. He also conducts seminars on credit risk and compliance.
Prior to joining Young & Associates, Aaron was the Vice President Credit Administrator of a community financial institution in southeast Michigan and managed all facets of the lending function, including originations, underwriting, ALLL analysis, servicing, and secondary market compliance. He holds a Bachelor’s in finance from Michigan State University and graduated from the Graduate School of Banking, University of Wisconsin.
Attendance verification for CE credits provided upon request.
Webinar Sponsored by Financial Education & Development
If you are having issues with registering online, please contact CBAO's Education,Training & Special Events Coordinator, Patti Webb, (614) 610-1877.
|Registration Options (Member/Non-Member Pricing)
|Live Webinar ($345/$490) – The live webinar option allows you to have one internet connection from a single computer terminal. You may have as many people as you like listen and watch from your office computer. Registrants receive a website address and passcode that will allow entrance to the seminar. The session will be approximately 90 minutes, including question and answer sessions. Seminar materials, including instructions, passcode, and handouts will be emailed to you prior to the broadcast. You will need the most-current version of Adobe Reader available free at www.adobe.com.
Recorded Webinar + Free Digital Download ($265/$400)– Can’t attend the live webinar? This option provides a recording of the live event, including audio, visuals, and handouts. We even provide the presenter’s email address for follow-up questions. You will receive an email with the recorded webinar link, which can be viewed anytime 24/7, beginning 6 business days after the webinar. You will also receive instruction on how to download a free digital copy of the webinar to your PC, which you may keep and use indefinitely.
Additional Live Webinar Connections ($175/$260) – Registering another banker from a different location
Both Live Webinar & Recorded webinar + Free Digital Download ($395/$600)– Includes Live Webinar and Recorded Webinar options above.