Strategic Policy Development
A bank’s loan policy forms the foundation for regulatory performance with respect to both compliance and safety, and soundness. Having sound and effective policies that are both manageable and measurable are critical in the current economic and regulatory environment. Banks need to be able to quickly adapt and adjust as conditions dictate.
The first rule of policy analysis is that any changes will have both intended and unintended consequences. As such, it is critically important that financial institutions study and carefully craft policies in order to achieve their desired goals — while avoiding possible adverse effects of policy changes. Premier Insights has the experience and the necessary tools to enhance lending performance, correct deficiencies, foster continuity and consistency, and achieve the primary goal of reducing regulatory risk.
Balancing Policy Efficiency & Risk
In our experience, many institutions that have been faced with regulatory challenges with regard to fair lending have in a large part been a direct result of flawed or outdated loan policies and procedures. Often, banks are reluctant to make changes due to the uncertainty in the longer term they may create with respect to the impact on the both the bank’s business model and overall lending performance.
At Premier Insights, we understand these challenges, taking a holistic approach to policy formulation rather than a myopic view of addressing individual issues. Our proven approach helps institutions balance efficiency and risk — and it can help your institution as well. Please contact us to learn more.