Can anyone please tell me how your bank monitors unused loan commitment balances, expiring, expired, and overdrawn loan commitments from an individual in management, to a group of managers, committees, and even to the Board.
#1993975 - 02/05/1509:46 PMRe: Unused Loan Commitment Balances one auditor
osucpa
Diamond Poster
Joined: May 2011
Posts: 1,410
Usually monthly reports are generated, depending on the original loan commitment, these reports will be distributed to the appropriate level of management and/or the board.
I can understand monitoring expired, expiring and/or overdrawn but for what resaon dones one monitor the unused - other than correctly rolling up into call report?
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Just working here until I get my letter from Hogwarts.
Unused commitments are contingent liabilities the FI is expected to fund (although they haven't been recognized on the balance sheet). If borrowers started accessing the commitments when funding is limited, then the FI could experience liquidity pressures.
_________________________ No, I didn't lose my mind. It got scared and ran away.
Thanks. That is the extent of my monitoring - one has to know what is out there and be up to date on unfundeds and expirations and such. I just wondered if I was missing something in "monitor". I guess under Basel III "unfundeds" are going to mean more to us and require a different type of monitoring.
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Just working here until I get my letter from Hogwarts.