Currently our bank utilizes the occup/business code as one of the criteria in determining the risk rating performed by Banker's Tool Box (BAM) on all of the deposit accounts. We do not input occup/business code on loan accounts; therefore, the loan account in BAM does not include this criteria when calculating the risk rating for loan. I don't think this is wrong since credit risk was performed during the underwriting review.

I like to know what others are doing and whether it is normal practice not to perform risk rating on loan account since the credit risk was already performed?

Thank you!

Most banks risk rate at the customer level and not at an individual account level.

Our loan take the risk rating of the deposit account relationship; however, if in doing the credit review, the credit officer finds any information of concern, it is referred to BSA and the risk rating of the entire relationship will be increased.

In other words, we risk rate at the customer level, but will adjust based on what we finds out during the loan on-boarding.

Paul

Accounts aren't risky; customers are.