5 Class Hours

Instructor: Ellen Sharp

Why this course is important:

Asset quality drives all other elements of your bank’s CAMELS rating, and loans make up the majority of most community banks’ earning assets. Those loans are inherently risky assets—some will inevitably go bad, so it’s important to know how to handle them when they do. Without strategic management of troubled assets, you face all kinds of risks: credit loss, litigation, expense, damage to the bank’s reputation, and criticism from regulators.  There is no “one size fits all” solution for distressed assets. The primary objective of this course is to provide a roadmap for thinking your way through a troubled loan, which includes understanding the human, financial, practical, and legal elements involved and selecting the right tool from your toolbox to address the problem—all while protecting your valuable reputation in the community and keeping your regulators happy.

Key takeaways of this course:

• Understand the expectations of directors, management, auditors, and regulators in managing troubled loans
• Identify early warning signs and core issues in complex problem loan situations
• Develop and adjust strategies to resolve distressed assets effectively
• Navigate legal risks and avoid common pitfalls in problem loan management
• Protect the bank’s reputation while meeting regulatory and accounting standards

 

Annual School Session

Second Year Elective Course

Competency: Lending