February 2018 E-Newsletter

february 2018 e-newsletter near syracuse ny image of founders from t gschwender & associatesAnnual reviews, as opposed to loans reviewed by your independent loan review function, are reviews conducted by the bank's internal credit team on existing loans. These are normally completed as new financial statements are received. With limited resources, annual reviews usually take a back seat to new loan originations or line renewals. Nevertheless, annual reviews are extremely important in identifying early warning signs that a borrower may be struggling. In addition, annual reviews will confirm Management's risk rating assigned to the loan. Making sure loans are accurately risk rated is the first step in monitoring and controlling credit risk. The review done by the bank's independent loan review function CANNOT replace this requirement for Management to do annual reviews in accordance with safe and sound banking practices.

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