Knowing that this is coming, there is no time like the present to start automating your processes. Allocation should also be automated. Additionally, it is imperative to include how changes can be made and how they will affect CECL models. Thinking outside the box will be necessary.
Building goodwill is imperative, as many businesses malaysia business email list will not have the capacity to recover from the economic crisis. In fact, many will need more than just a TDR. The good news is that regulators will not penalize financial institutions that use sound practices by offering various risk-reduction solutions to their customers.
Similarly, if a payment deferral is agreed to – and it is not yet reported as late – it will not be considered late even during the deferral. Additionally, TDRs that follow the guidelines may still be considered collateral based on the Fed’s discount window.
Automate Now
Increase the defensibility of risk management processes through documentation for reviewers, auditors and others.
As risk management becomes even more important today, automation can help increase defensibility to auditors, regulators, and reviewers. It can also help reduce user errors around silos and manual entry when TDR assault is requested and determined.
Look for new ways to improve how you support your customers. Consider implementing a COVID-19 recovery assistance program to use practices deemed “safe and sound” to mitigate credit risk. Involve key stakeholders in the design and implementation of this type of program. Consider the impact of this program on liquidity and capital.
