CRE Tenants Have Missed Billions in Payments. Which Sectors Are the Most at Risk?
While it is too early to assess the full effects, COVID-19 will permanently reshape commercial real estate in the U.S.
Browsing: Credit risk
Agencies Issue Guidance on Working with Borrowers Nearing End of COVID-19 Accommodations
With many COVID-19-related accommodations for loans nearing their initial expiration dates, the Federal Financial Institutions Examination Council today issued a joint statement outlining prudent risk management and consumer protection principles for financial institutions to consider while working with affected borrowers.
OCC’s Brooks Warns Governors, Mayors on Risks to Banks of Long-Term ‘Lockdowns’
As governors and municipal officials make decisions on reopening local economies in the wake of the coronavirus pandemic, Acting Comptroller of the Currency Brian Brooks warned them about the long-term risks of so-called lockdown orders on the financial system.
Podcast: How Asset-Based Lending Appeals to Commercial Clients Amid COVID-19
As the coronavirus pandemic and the policy response to it affect businesses and commercial credit, many borrowers are converting revolving and secured cashflow credit facilities to asset-based lending facilities. Ed Gately of MUFG Americas discusses this trend and what it means for borrowers and banks.
Agencies Issue Policy Statement on Allowances for Credit Losses
The financial regulatory agencies today issued a final interagency policy statement on determining allowances for credit losses under the current expected credit loss methodology.
Fannie, Freddie Transfer $115B in Credit Risk
Since the Federal Housing Finance Agency launched a credit risk transfer program for Fannie Mae and Freddie Mac in 2013, the enterprises have transferred $115 billion in credit risk to private investors, amounting to about 3.3% of unpaid principal balance, the FHFA said today.
Agencies Approve Early Adoption of SA-CCR, Delay of CECL Capital Phase-In
The federal banking agencies today announced two actions intended to help banks ensure the continued flow of credit to households and businesses during the coronavirus pandemic.
Loans Modified Due to COVID-19 Generally Not Treated as TDRs, Agencies Clarify
Loan modifications for borrowers affected by the coronavirus pandemic will not generally be required to be treated as troubled debt restructurings, federal and state banking agencies said today.
McWilliams Calls on FASB to Offer CECL Postponement
In light of the sudden and significant economic changes wrought by the coronavirus pandemic and public health response, FDIC Chairman Jelena McWilliams today asked the Financial Accounting Standards Board to allow banks that have begun implementing Current Expected Credit Loss methodology to postpone it, as well as to impose a CECL moratorium for banks not yet required to implement it.
Podcast: A Community Bank Coronavirus Playbook
Amid the global coronavirus pandemic—and a massive response by policymakers—how can community banks best meet customer and employee needs while managing their balance sheets and loan portfolios?