Large Bank Supervision Forum 2023

The 2013 Guidance Enterprise Valuations

Regulator Concerns  Unsupportable assumptions or inadequate sources or methods  Completed by an inexperienced analyst, as part of origination process  No independence from underwriting and approval (origination function)  One and done

Best Practices  Typically considered to be Secondary Source of Repayment  Qualified Person independent of origination function  Appropriate to Borrower  Stress scenarios  Periodic Updating

For financial professional or qualified institutional investor use only. Not for inspection by, distribution or quotation to the general public.

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The 2013 Guidance Reporting and Analytics

Regulator Concerns  Board and Executive Management not periodically updated  Insufficient attention to borrower and portfolio aggregates Best Practices (minimum)  Quarterly portfolio review  Quarterly ALLL reassessment  Quarterly Enterprise Value update  Quarterly risk grade review (individual and aggregate)  Quarterly concentrations review  Monthly secondary market price review  Monthly for flagged or heightened (watch) risk credits

For financial professional or qualified institutional investor use only. Not for inspection by, distribution or quotation to the general public.

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