risk management 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...

Balancing the Risks & Rewards of Lending with Effective Credit Policies

Posted on March 18, 2024 by Baker Hill

Credit risk is a significant source of risk for banks, and there’s no doubt that effective credit risk management is critical to minimize losses, protect customer trust, and ensure compliance. While measuring and mitigating credit risk is nothing new...

How to Empower Credit Analysts in Any Economic Environment

Posted on February 2, 2024 by Baker Hill

Credit analysts play a vital role within a financial institution, as they essentially act as the guardians of a bank or credit union’s balance sheet. To do this, they must be able to ascertain credit risk for new and existing...

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...

Strategies for Community Bank Construction Lending

Posted on July 21, 2023 by Baker Hill

Community banks take on a large amount of risk when it comes to construction lending, especially in the current market as lenders, builders and developers are grappling with tightened credit conditions and rising interest rates. However, after the recent...

Riding the Credit Wave: Why Proactive Loan Portfolio Monitoring is Your Bank's Lifeline in the Rising Tide of Delinquencies

Posted on July 13, 2023 by Baker Hill

In the ever-evolving landscape of banking and credit unions, proactive loan portfolio management has emerged as a paramount factor. As financial institutions strive to strike a delicate balance between risk and reward, effective loan portfolio management becomes instrumental in maintaining...