portfolio monitoring Posts

Metrics Your Credit Analysts Should Review Regularly

Posted on March 25, 2024 by Baker Hill

The Probability of Default (PD) plays a crucial role in credit risk analysis. It serves as a foundational metric that enables lenders to assess the creditworthiness of borrowers accurately. However, this isn’t the only metric worth reviewing on a...

Teamwork Makes the Dream Work: Ways to Empower Credit Teams & Loan Officers

Posted on March 11, 2024 by Baker Hill

Consistent lending strategies enable financial institutions to provide needed capital to consumers and businesses within their communities. The banks that are positioned to grow their portfolios in 2024 are the ones with strong credit cultures that empower relationship managers...

How Will AI Change Lending?

Posted on February 28, 2024 by Baker Hill

The popularity of artificial intelligence (AI) has skyrocketed since the launch of tools like OpenAI’s conversational chatbot, ChatGPT, which accumulated more than one million users a mere week after going live. ChatGPT effectively brought AI into the mainstream and financial...

Positioning the Balance Sheet for Profitability as High Interest Rates Persist

Posted on December 11, 2023 by Baker Hill

Rising rates over the last year and a half has posed challenges for financial institutions – from higher deposit costs to reduced loan demand. At the same time, lenders are also having to reassess the credit quality of their loan...

Rising Debt Levels & Implications for Portfolio Risk

Posted on November 8, 2023 by Baker Hill

Total household debt rose by $16 billion to reach $17.06 trillion in the second quarter of 2023, according to the latest Quarterly Report on Household Debt and Credit from the Federal Reserve Bank of New York. Credit card balances...

Uncovering the Opportunities in CRE Lending

Posted on October 16, 2023 by Baker Hill

Concerns about commercial real estate (CRE) exposure has some worried about banks' portfolio health, especially regional banks. However, certain CRE sectors are much more resilient than others, and some even present opportunities even in the face of potential economic volatility....