The economic fallout from the coronavirus pandemic has been nothing short of extraordinary. Unemployment is skyrocketing and the federal government has been scrambling to provide relief to affected industries and businesses. Stimulus packages and cash reserves will help many businesses survive for a while, but the longer the crisis lasts, the more problem loans we’ll see. That means banks need to start preparing their operations now for the wave of special assets that’s soon to come.
History lessons
The current health crisis is unprecedented. But to understand how banks will need to react to the subsequent economic downturn, we only need to look back a few years.
Following the financial crisis of 2008, regulators became much stricter on commercial lenders, demanding better portfolio risk management, better controls, and better decision-making. You can be sure they won’t be late to respond to this crisis. Banks will need to have robust systems in place to track and manage special assets or risk regulatory intervention. The good news is that there is still time to prepare.
Better special assets management
BankPoint wants to help banks weather the storm, and encourage bankers to explore our special assets management solutions.
With BankPoint’s intuitive interface, bankers can easily manage credit actions and help mitigate credit risk. Our system allows lenders to track new Paycheck Protection Program loans, deferment and forbearance requests, loan downgrades, watchlists, impairment reviews, and other credit actions. BankPoint also features a fully featured REO management module should your bank take on significant real estate assets.
BankPoint has been around for years, survived regulatory scrutiny, and been battle-tested in economic conditions very similar to the ones we find ourselves in today. We‘re confident we can help banks navigate these difficult times and reduce risk as much as possible. If you’re looking for ways to better prepare your bank for the economic downturn, please contact us today.
