Events of the last six months suggest a slowing economy and potential credit problems especially in residential housing. Many banks take comfort in the fact they have low levels of past dues, criticized and classified loans and losses. Historically, these measures of credit performance have been poor predictors of future credit performance especially if the bank has loosened its underwriting standards, emphasized higher risk types of lending and/or allowed concentrations to build in the portfolio.

Record earnings, strong capital positions and excellent portfolio credit quality suggest that "times have never been better." Yet, many industry lenders believe the industry is focusing on the wrong things. Industry performance today reflects the quality of lending decisions made three, four and five years ago. Events of the last one to two years suggest that there has been a significant increase in risk in bank loan portfolios which portends incremental volatility in credit performance and earnings.

Is your bank vulnerable to a downturn in the economy? Has the risk and the potential for volatility in your bank's loan portfolio quality increased?

Participants in this workshop will have the opportunity to assess the vulnerability of their individual banks and can begin to develop strategies to assure continued strength in portfolio quality and earnings.

Who Should Attend:
Executive Management
Senior Lenders
Senior Credit Officers
Lenders
Credit Personnel as appropriate

Program Length: One Day