Event Profile

The Board’s Responsibility in Managing the Credit Portfolio

The largest asset your bank has is the credit portfolio. Mismanagement of this aspect is all too easy and carries with it dire outcomes. Growth in higher risk loans outside your established parameters can lead to losses, declining earnings, stressed ratios, and possible regulatory actions such as Matters Requiring Attention, Memorandum of Understanding or worse, a Consent Decree.

It is imperative that the board have a strong hand in the credit process. This includes setting the core credit priorities, approving the credit policy, approving larger deals but also monitoring the credit portfolio to assure it aligns with the bank’s risk appetite and strategic goals.

This session explores how boards can build a strong credit foundation through the right culture, governance, and oversight practices. Participants will gain practical insights into evaluating credit processes, monitoring portfolio health, and addressing emerging risks in commercial real estate and agricultural lending before they become larger challenges. 

Learning Objectives

• Understand the board's role in establishing credit priorities, overseeing the credit process, and maintaining a strong credit culture.
• Learn the governance structures and oversight practices that support effective portfolio development and alignment with the bank's risk appetite.
• Gain a foundational understanding of credit analysis to assess whether proposed loans meet bank standards.
• Learn how to effectively monitor portfolio performance through key reports and director actions.
• Examine risks associated with commercial investment real estate and agricultural lending and identify actions to address emerging credit concerns before they affect the bank.

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