Podcast: Annual vs Active Review
In this Podcast Episode from The ABA
Hugh Shannon, Account Director, OakNorth
Sharon Whitaker, VP, Commercial Real Estate & Finance, ABA
Each year, commercial lenders are required to conduct an annual review on each of their borrowers and every year, the majority of cases come back fine. The businesses are in good financial health, yet first-line credit teams are still expected to review their financials, determine their risk rating, and prepare the credit write-up. This takes almost as much time as performing a full credit assessment - time which could be spent originating new loans or working with the borrowers which clearly are in financial distress and present the most risk to the bank.