Credit Quality Management

Credit quality management

Managing the Quality of the Loan Portfolio

The quality of a bank or credit union's loans impacts all components of its financial performance. Loan quality problems can diminish the liquidity inherent in the loan portfolio and have a negative impact on the adequacy of the institution’s capital. Poor loan quality also reflects upon management’s competence. Continued loan problems may also impair an organization’s ability to generate quality new loans.

To aid banks and credit unions in managing credit risk, Abound:

      • Provides comprehensive credit quality and loan documentation review, either on-site, or off-site;
      • Evaluates credit administration and credit risk management policies, practices, systems, controls and reporting;
      • Assists in developing loan workout and other troubled asset risk mitigation and liquidation plans.