Conducting a Loan Portfolio Analysis

Financial institutions of all sizes are recognizing the need to understand the overall risks of their loan portfolios. While prudent loan approvals and loan performance monitoring are traditional portfolio management tactics, they only address part of the problem. In today’s complex real estate and lending environment, conducting a thorough loan portfolio analysis on a regular basis is a must. Doing so provides you with an understanding of the portfolio’s risk across the board, not just on a loan-by-loan basis.