Credit Services
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Credit Services

Representative Engagements

Credit risk will always be the largest risk and risk management challenge for financial institutions. Both bank regulators and boards of directors are increasingly scrutinizing portfolio information, risk management, capital adequacy, and governance structures, placing a premium on credit policies and practices and prompting organizations to look to the soundness of their systems in place.

 


When managed properly, lending activities benefit the economy and provide lending institutions stable risk-based returns even in times of economic stress.  However, as we have seen, when institutions allow their risk credit cultures and credit risk management programs, policies, and practices to weaken in the face of competitive pressures, or in times of prosperity, the effects can be fatal.

Whether your firm is looking to enhance and align credit risk management with strategic goals and opportunities, or is grappling with credit risk and risk management problems and attendant regulatory pressures, now is the time to assess your credit risk programs and practices.

Promontory's Credit Advisory Services is staffed with leading risk management experts who combine experience in senior credit and regulatory leadership. Our blend of former regulators, policy makers and seasoned credit risk management professionals, combined with knowledge of industry practices and regulatory expectations, provides Promontory with the ability to advise and assist clients on a range of credit risk management activities and related regulatory matters.    

Our credit services expertise encompasses two general areas of practice:

Credit Risk Management
Credit Risk Review  

Representative Engagements

  • Promontory conducted an assessment of the effectiveness of problem asset work-out and collection activities at a super-regional financial institution. The scope of the assessment included reviewing the organizational structure, staffing adequacy (numbers and expertise), pipe-line and inventory reporting and forecasting, adequacy of work-out plans, including actions taken to reduce problem assets. The review resulted in enhanced governance, improved reporting, and enhanced, more proactive, work-out strategies.
  • Promontory conducted credit risk and credit risk management assessments at a number of institutions ranging in size from $2billion to $2 trillion in response to regulatory enforcement action requirements, or to prepare them for supervision by new regulators. These assessments covered tone and culture, governance, organizational structure and staffing, risk management including measurement, monitoring and reporting, and the conduct and effectiveness of independent credit risk review and audit functions. Gaps to regulatory expectations and or industry standards were reported to the Boards of these firms and action plans developed to improve any identified weaknesses.