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Risk Guidance on Commercial Real Estate Concentrations

Date: Tuesday, September 19, 2017
Time: 1:00-2:00 pm ET

Sponsored by Lorman Education Services


Registration - Live Webinar Only: $219.00

Registration - Live Webinar Plus CD Recording: $288.00

 

Commercial real estate (CRE) and multifamily concentrations are an area of scrutiny for regulators in the current exam cycle.

Regulators have indicated that they will focus on banks which have had significant growth in CRE or are approaching or already exceeding regulatory thresholds for CRE concentrations. However, having a CRE concentration is not necessarily a bad thing.

In fact, many community banks have successfully managed their CRE portfolios through several economic cycles. This topic will help you ensure that you have an effective risk management framework to demonstrate your ability to manage your CRE concentration risk.

We will discuss how to manage this type of concentration risk, including lessons learned from past cycles and current industry best practices. Topics covered include limit structures, underwriting/policy requirements, MIS and reporting, stress testing and Board oversight.

 This topic will enable banks to be proactive with their regulators in showing that they have sufficient capital to support a CRE concentration, and the necessary information and oversight to allow the Board and management to continually assess whether the bank's CRE strategy remains appropriate given current market conditions and portfolio trends.

Learning Objectives:

  • You will be able to identify current areas of regulatory scrutiny.
  • You will be able to discuss how to proactively outline your CRE risk management framework for your regulator.
  • You will be able to explain how stress testing can help to justify or support your CRE concentration.
  • You will be able to review and address any gaps in your CRE risk management framework.

This Live Webinar Covers These Hot Issues:

Why the Current Concern About CRE Concentrations?

  • Data From Last Downturn
  • Current Underwriting Trends
  • Current CRE Market Trends

How to Implement Elements of an Effective Risk Management Framework

  • Board and Management Involvement and Oversight
  • Portfolio Management
  • Management Information Systems
  • Market Analysis
  • Credit Underwriting Standards
  • Stress Testing
  • Credit Review

Stress Testing - Essential to Justifying Concentrations

  • Different Methodologies
  • Support Existing Limits and Contemplated Increases in Limits
  • Proactively Demonstrate Capital Adequacy to Support Concentration Levels

Other Implications

  • Considerations for Allowance for Loan and Lease Losses
  • Diversifying the Loan Portfolio – Risks and Benefits

Credit Information (Sponsored by Lorman Education Services)

  • CLE
  • CPE
  • NASBA

For Detailed Credit Information page click here

Only registered attendee will receive continuing education credit.

Faculty

Elizabeth Williams, CEIS Review

  • Managing director of Special Projects at CEIS Review and has more than 25 years’ experience in banking and consulting
  • Manages CEIS’ advisory engagements as well as those pertaining to the Allowance for Loan and Lease Losses (including methodology validation), stress testing programs and various projects for clients involving “complex” portfolios, process and procedure and other specific needs
  • Previously worked at Bank of America and legacy institutions FleetBoston and BankBoston, and began her career at Chase Manhattan Bank
  • Has held leadership positions in risk management, loan review, credit, and portfolio management
  • Positions held have included Commercial Credit Policy executive, managing director in Credit Review, and senior credit officer responsible for firm-wide lending to national retailers, restaurants and food and beverage companies
  • Has also led loan review examination teams assessing lending and risk management in Latin America, Asia and in a number of specialized industries
  • M.B.A. degree, Northeastern University in Boston; undergraduate degree in economics, College of William and Mary in Williamsburg, VA
  • Can be contacted at 212-967-7380 or lwilliams@ceisreview.com

(Not available outside the US)