Strengthen your institutions’ loan and credit standing with top notch loan review from CEIS Review

CEIS Review has a prestigious presence in the realm of loan review sector, professionally catering to leading commercial and savings banks since 1989. The company prides itself for possessing a fleet of veteran lenders with commendable expertise and experience under their belts. These seasoned loan review consultants are at the helm of tailoring and implementing loan review programs for banks.

The consultants have served in the capacity of senior or executive level management in the domains of money market, regional banks, community banks, and commercial finance companies. This robust and relevant background renders the CEIS Review team highly competent to carry out the entire array of loan review procedures involving review, establishing and validating loan loss reserve methodology, portfolio stress testing, maintaining credit loan policy, issuing advisories on problem loans and conducting loan related seminars.

The consultants independently review the credit standards of banks for accurately assessing the risk profile and provide practical recommendations to improve the quality of portfolios. The grading process will be completely executed in an unbiased, unprejudiced and rational manner. The loan review consultants tailor the program to suit client’s requirements and extensively use software for error free evaluation.

CEIS Review carries out review for client over a span of one year and appraises around 75% of average outstanding loans and letters of credit. Data and remarks are updated regarding the actions initiated for previously criticized and classified loans at each scheduled review. The consultants also critically examine newly criticized or classified loans, delinquencies, non-accruals, restructured transactions, new and renewed commitments which have surfaced since their last review visit. Comprehensive assessment is undertaken to check the sufficiency of allowances set aside for loan and lease losses, lending policies and procedures of the banks.

The company is equipped with contemporary resources and boasts of imposing infrastructure to offer least turnaround time. The consultants also discuss with the account officers before arriving at the final conclusion. The discussions pertain to final grade determination. The discussion schedule is flexible and time efficient to offer least interruption to regular jobs.

Once the review has been satisfactorily conducted, appropriate management is apprised of orally the findings of the assessment. Any unsorted differences, open items, or observations relating to lending and administrative process are also discussed. The detailed report is submitted to bank after the draft has been thoroughly scrutinized by CEIS office. If any material development of interest takes place, the information regarding the same is accommodated in the final report. 

Final report is prepared and presented within four weeks of wrapping up onsite review.  It carries an executive summary of findings along with recommendations pertaining to overall credit and loan portfolio management, portfolio quality and a detailed write-up on each loan reviewed.

CEIS loan review consultants can be hired at very competitive fees. The fee is finalized based on the overall engagement's goals, and in consideration of the potential overall relationship. Undoubtedly, CEIS Review Loan Review service is a superlative and all encompassing program available to commercial lending institutions.

Find more information to http://www.ceisreview.com/

CEIS loan review consultants can be hired at very competitive fees, Find more information to http://www.ceisreview.com/pages/biographies/4/catid/6/CEIS_Consultants . Call us at Toll Free at 888.967.7380.

Relevance of Structured finance review for banking systems

The apparent complexity that has crept in every sphere of financial domain has mandated institution of robust review mechanism to keep track of the discrepancies. Such discrepancies, if gone unnoticed, can throw the operational framework off the track bringing about unprecedented loss. Structured finance review is one such audit instrument to validate the health and efficiency of asset quality and associated spectrum. 

Overview of structured review

The review program is tailored for clients who wish to assess the asset quality of targeted entities involving business development companies, specialty finance companies, commercial institutions, and leasing agencies. 

Areas covered

The specialized fields that fall within the ambit of structured finance review includes middle market non investment grade leveraged finance, commercial real estate finance classified in the domains of conventional and non conventional, asset dependent lending, and cash flow enterprise value lending. The classification of assets is broadly done at the senior and subordinate debt level across industry wide categories.    

Implementation 

Experienced senior bankers are at the helm of structured review program. Such bankers possess significant amount of exposure at senior or executive level management and have commendable expertise in designing and implementing structured finance. The review carries out assessment of the adequacy and reliability of the credit and investment risk rating system, loan approving mechanism, loan monitoring framework, underwriting, efficiency of loan and credit administration, and legal documentation. It also attempts to check the sufficiency of asset valuations and specific loan loss reserves. Specialized checks are done with regards to special purpose vehicles discharging role as conduits through items that involve testing of payment application, cash collections, servicer report, reviewing borrower base, information systems, corporate governance and true sale accounting. 

Report mechanism

The structured finance review program is tailored to suit the client’s requirements optimally. The agency executing the review will prioritize the actions accordingly for rapid turnaround time. The ambit of activities to fall under the review will be decided upon in consultation with the client. The structuring of review is done in a manner that will facilitate fast delivery of written report soon after completion of the onsite review process. The report will comprehensively cover the findings of the review. It will include the observations and conclusions in summarized version. A written report for each type of loan and investment reviewed will underpin the findings.

Structured finance review is a robust mechanism to be exercised diligently for ascertaining the overall health of a financial institution. Banks should exercise this option diligently to plug any loopholes that might have crept in inadvertently in the loan review, approval, monitoring and other related financial activities.

CEIS Structured Finance Review programs are customized to the client's needs and each assignment is prioritized for a quick turnaround time. Find more information to http://www.ceisreview.com/pages/Services/2/125/Structured_Finance_Review

Top insights into the domain of credit audit

Financial institutions with splendid portfolio attempts to improve quality of the same by getting credit audit conducted for accurately mapping risk profile and gain practical insights to plug the loopholes. The Audit ascertains compliance with existing sanction and post sanction procedures adopted by the bank. 

Objectives of audit

•   To improve the credit portfolio quality
•   Reviewing of sanction procedure of large loans and compliance status
•   Receive feedbacks on regulatory compliance
•   Get credit risk assessment done independently
•   Detect early warnings and adopt suitable remedial measures
•   Get corrective actions recommended for improving credit quality, administration of credit    and competence of staff

 Functions of credit audit agency

•    Processing credit audit reports
•   Analyzing audit findings and advising concerned functionaries
•   Following up with controlling authorities
•   Apprising higher management
•   Processing responses received and arranging for closure of relative audit report
•   Maintaining repository of advances subjected to audit

 Scope and coverage of audit

•  Portfolio review: Examining credit and investment portfolio quality, and suggesting improvement steps involving slashing of concentration in particular sectors as stipulated in loan policy or limits suggested by highest regulatory body
• Loan review: Reviewing sanction procedures and  post loan sanction processes of the entire array of fresh loan proposals, renewal proposals, randomly selected procedures, and accounts of sister , group or associate concerns.
• Action points review: Verifying compliance to policies framed by bank and checking sanction approval compliance with regulatory stipulations, examining sufficiency of documentation, conducting credit risk assessment, examining line functionaries roles in the perspective of conduct of account and follow up, overseeing action initiated by line functionaries to tackle serious irregularities, and detecting signals of early warning and suggesting suitable remedial measures

Review frequency

The review frequency is assessed based on the risk magnitude with high risk accounts requiring review at shorter intervals compared to low risk ones. The review frequency is also based on certain other factors like

•   Examining sufficiency of policies, practices and procedures
•   Feedback to be provided to ascertain regulatory compliance
•   Reviewing of credit risk assessment techniques
•   Examining adequacy of reporting system and pointing out exceptions
•   Recommending of corrective actions for proper credit administration
•   Forecasting happenings in near future

Procedure for credit audit

The audit will be conducted on site at the bank’s branch which has evaluated the advance and makes available primary operative credit limits.

Credit audit will seek to iron out any irregularities in the system. It is imperative for the overall health of the financial institutions.

To learn more about credit analysis and credit audit at http://www.ceisreview.com/pages/Services/2/109/Credit_Analysis. all us at Toll Free at 888.967.7380.