Bank Analysis School - September 2023

Internal Use Only

45 administration of the overall loan account, including establishment of sound lending and collection policies, are of vital importance. ” - FDIC Risk Management Manual Evaluation of the loan portfolio involves much more than merely appraising individual loans. Prudent management and

Internal Use Only

Learning Objectives

1 – Importance of AQ / Impact on Other Components

2 – Asset and Loan Categories

3 – Asset Classification / Problem Assets

4 – Loan Underwriting and Administration

5 – Allowance for Credit Losses