OCC Compliance: Loan Monitoring & PortfolioRisk
Loan Portfolio risk management is important part of managing borrowers financial and reporting documents for loan monitoring. Almost 70% of banks still rely on some combination of spreadsheets, core ticklers, or other manual processes.
Managing loan portfolio risk is a critical function of banking operations. Banks must ensure that loans are underwritten and managed in compliance with the Office of the Comptroller of the Currency (OCC) guidelines. However, managing loan portfolio risk can be a complex and time-consuming process, particularly when it comes to loan monitoring. Fortunately, OCC compliance can help banks streamline loan monitoring and reduce risk.
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The OCC has issued guidelines on loan portfolio risk management to help banks identify and manage risk in their loan portfolios. These guidelines provide a framework for banks to monitor loan performance and identify early warning signs of potential default. Banks that comply with these guidelines are better equipped to manage risk and reduce the likelihood of loan losses.
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Loan monitoring is a critical component of OCC compliance. Banks must continually monitor loan performance to identify early warning signs of potential default. This involves analyzing financial statements, credit reports, and other data to assess the borrower's ability to repay the loan. Banks that comply with OCC guidelines are better equipped to monitor loan performance and identify potential default risks.
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Automated loan monitoring is becoming increasingly popular among banks, and for a good reason. Automated loan monitoring can provide banks with real-time insights into loan performance. This can help banks identify potential default risks early on and take proactive measures to mitigate those risks.
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Furthermore, automation can reduce the risk of errors and ensure that compliance guidelines are being followed consistently. Banks can use digital banking platforms to automate loan monitoring and ensure that loans are underwritten and managed in compliance with OCC guidelines.
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Another critical aspect of OCC compliance is document collection. Banks must collect and organize documentation from borrowers to ensure that loans are underwritten accurately. However, manual document collection can be a time-consuming and error-prone process. Digital banking platforms can provide tools to automatically collect and organize loan documentation, ensuring compliance with OCC guidelines.
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In conclusion, managing loan portfolio risk is critical to the success of banking operations. OCC compliance plays a vital role in managing loan portfolio risk by providing guidelines for loan monitoring and document collection. By complying with OCC guidelines, banks can identify and manage potential default risks and ensure that loans are underwritten and managed in compliance with OCC guidelines. Digital banking platforms can help banks automate loan monitoring and document collection, reducing the risk of errors and ensuring compliance with OCC guidelines. Ultimately, banks that comply with OCC guidelines are better equipped to manage risk and reduce the likelihood of loan losses.
Why BankStride platform
BankStride is a web-based software solution for commercial banks and credit unions that works with customers to manage loan agreements and eliminate credit exceptions. FileStride improves credit exception management by reaching beyond the walls of the bank to work directly with customers.
Customers respond to information requests much like paying an online invoice – they clearly see what’s required of them and they act. Customers can respond using a login-less portal or by email – no account or password required.
With BankStride, banking teams can schedule recurring requests for documents like financial statements and tax returns, compare actual and threshold covenant values (e.g. minimum DSCR), and send compliance certificates for signature via DocuSign.
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BankStride is like autopay for customer information.
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How does this help banks
Banks that pursue superb loan agreement management are faced with handling complex recurring tasks using the basic tools of email, spreadsheets, and calendar ticklers. Banks that let this work fall behind risk delaying their awareness of problematic loans or operating practices, jeopardizing capital and reputation.​
A borrower’s risk profile can change significantly over the years that follow a lending event. Managing loan agreement adherence through reporting and internal monitoring is an ongoing and tedious battle for banks.
With BankStride, banks gain high-resolution loan agreement monitoring that saves time and delights customers.
How does our bank customer use BankStride
For example, BankStride has proven effective in managing revolving lines of credit. BankStride automatically requests and reminds customers to submit monthly AR and AP listings, inventory analyses, and borrowing base certificates each month.
BankStride reminds the banking team to test various financial ratios. The results of the customer’s actions and the ratio testing all roll up to per-banker and per-office reports that can be run on-demand in seconds.
Our bank customer uses BankStride to schedule and automate the activities required to monitor loan agreements.
​Benefits of Using BankStride for
Covenant Monitoring
Risk Mitigation: By providing real-time alerts and comprehensive monitoring, BankStride helps mitigate the risk of covenant breaches and financial penalties.
Accuracy: Integration with financial systems ensures that the data used for covenant calculations is accurate and up-to-date, reducing the risk of errors.
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Efficiency: The automation of data extraction, monitoring, and reporting streamlines the covenant management process, saving time and resources.
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Enhanced Compliance: BankStride ensures that all covenant requirements are met, maintaining compliance with loan agreements and fostering strong lender relationships.
BankStride is powerful for bankers
Flexible information management
BankStride supports one-off and recurring information requests with flexible storage layer configuration options.​
Reports at Every Level
Bank leadership can drill down to identify pockets of risk and underperformance, ensuring every team member knows where to focus.​
Loan Monitoring
Track financial reporting, covenants, and certificates, and issue compliance certificates for signature via DocuSign.​
A Clear Banker's View
See your portal in action.
Easy for bank customers
No usernames and no passwords
Customers receive tokenized links for portal access, and bankers can request information from anyone with an email address.
Upload or email
Easy-to-use customer portals show exactly what is needed, while email-based file ingestion lets customers respond by emailing files.
Timely alerts
Reminders and alerts are aggregated to prevent information overload, can be toggled per user, and feature customizable schedules.
A Clear Customer's View
See your portal in action.
Streamlining Loan Underwriting, Loan Monitoring, Covenants, and Financial Reporting
Automate Bank customer information requests for covenant monitoring , loan reporting, financial reporting and exception handling.
FiStride allows you and your customers to exchange information with zero friction so that you can reduce credit exceptions and recover valuable time.
The Workspace view in FileStride gives you a holistic overview of what you have, what you need, and where your customer stands.
Get a quick pulse check on where your projects stand with the Dashboard view in FileStride.
The Workspace view in FileStride gives you a holistic overview of what you have, what you need, and where your customer stands.
Know what you have, know what you need.
BANKERS STREAMLINE LOAN REPORTING DOCUMENTS
Why BankStride?
We're the digital banking solution you've been waiting for.
We make it easy to automate your loan reporting and covenant monitoring. No more managing checklists, searching for files in emails, or waiting on updates from other parties. Just create your requests and let BankStride do the work for you.
How it works
BankStride combines checklists with cloud storage to help you communicate and monitor your information requests and documents.​
All it takes to get started:
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​Request items by creating projects for one-off items or templated lists.
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Review incoming files from your client and mark items as satisfied or complete.
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Repeat with automatically recurring requests and reminders.​
FEATURES
​Bankers increase efficiency and improve loan risk and compliance with loan monitoring, reporting and exceptions.
