Bank Analysis School April 2025

Internal Use Only

Learning Objectives

1 – Importance and Impact on Other Components

2 – Asset and Loan Categories

3 – Asset Classification / Problem Assets

4 – Allowance for Credit Losses

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Internal Use Only

Asset Classification

Pass

No or limited concerns

Special Mention

Criticized but not classified

Substandard

Doubtful

Adversely classified

Loss S E V E R I T Y

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