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#45665 - 11/26/02 05:44 PM
Re: ALLL internal audit - identifying problem loans
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10K Club
Joined: Jul 2001
Posts: 83,226
Galveston, TX
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I would say that it depends on the specific circumstances surrounding each loan. I don't think that there is any magic timeframe. The question becomes - when should have the bank recognized the problem? If a customer is showing no problems and an extraordinary event happens and they bankrupt out of the blue, you not going to see these types of loans identified much ahead of time. However, if the loan was late on a chronic basis, it may have been identified years before. So - the answer is - it just depends.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#45666 - 11/26/02 07:12 PM
Re: ALLL internal audit - identifying problem loans
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100 Club
Joined: Apr 2002
Posts: 100
Silver Spring, Maryland, USA
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I agree -- each loan is an individual case. What I would be looking at is the process, the proceedure, that the credit department used to ascertain whether or not they are truly identifying the risks inherent in the portfolio or managing by delinquency...
IMNSHO, FWIIW
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IMNSHO, FWIIW
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#45669 - 11/26/02 08:25 PM
Re: ALLL internal audit - identifying problem loans
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10K Club
Joined: Jul 2001
Posts: 83,226
Galveston, TX
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It also has to due with homogenous vs non-homogenous loans. What type of loans were in your sample?
Grist - I would be hesitant to declare that there is a problem based on the information presented.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#45671 - 11/26/02 09:39 PM
Re: ALLL internal audit - identifying problem loans
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10K Club
Joined: Jul 2001
Posts: 83,226
Galveston, TX
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Well, I would much rather approach management and say "I have a question" rather than say "We have a problem" when I am lacking all pertinent facts. I would hate for this person to be sitting in front of the management or audit committee with that attitude and get their lunch eaten. I think that is the type of advice that the original poster was looking for.
In an effort not to be rude on this forum, I will just say that some of your comments are uncalled for and add little to the value of your posts. While you may choose to disagree with my assessment of a situation, there is no call for belittling comments.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#45673 - 11/26/02 10:28 PM
Re: ALLL internal audit - identifying problem loans
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Platinum Poster
Joined: Apr 2001
Posts: 502
Sylacauga, Al, United States
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Grist:
I have no comment to assist the original poster. I am reading to analyze everyone else's comments on this post. This is another method I use to learn.
You appear to be very intelligent and knowledgable in audit. I, among others, appreciate your thought process.
I have a question though, and I do not want to appear disrespectful to you in asking it. But why do you most frequently appear to be a "harsh" individual? Are you really that way or do some of your postings just come across that way? Are you happy doing what you do?
You can come back with "it is none of my business" and maybe it is not, but I would like to see us be able to use your knowledge and develop a camaraderie with you.
Somedays we go through enough of comments at work so we do not need to be abrasive with each other here.
Again, I hope what I am saying and how I am saying it comes across the way I am intending it to be, not harsh and just wanting to be helpful.
Opinions and requests are mine not my employer
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#45675 - 11/26/02 10:46 PM
Re: ALLL internal audit - identifying problem loans
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Platinum Poster
Joined: Apr 2001
Posts: 502
Sylacauga, Al, United States
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Afraid not. I am here to stay. And I do not give up easily. No disrespect intended.
Opinions are mine not my employer.
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