Concentrations of Credit Policy

$175.00

This Concentrations of Credit Policy Template addresses how a bank, credit union, fintech company, or other type of financial institution prudently identifies, measures, monitors, and controls credit activities through concentrations of credit (loan concentrations) in order to help achieve effective loan portfolio management (LPM).  This process helps an organization to understand not only the risk posed by each credit, but also how the risks of individual loans and portfolios are interrelated.  See more information about this product below.  In addition, we recommend adding a Product Update Protection Plan to your shopping cart to ensure you automatically receive an updated version of this policy template every time it is revised by us via e-mail within one year from the date of purchase.

Concentrations of Credit Policy

This Concentrations of Credit Policy Template addresses how a bank, credit union, fintech company, or other type of financial institution prudently identifies, measures, monitors, and controls credit activities through concentrations of credit (loan concentrations) in order to help achieve effective loan portfolio management (LPM). This process helps an organization to understand not only the risk posed by each credit, but also how the risks of individual loans and portfolios are interrelated.

Table of Contents

  • Purpose and Contents – Topic 1
  • Policy Statement – Topic 2
  • Portfolio Diversification and Concentration Overview – Topic 3
  • Pools of Transactions – Topic 4
  • Identification of Concentrations – Topic 5
  • Correlation of Pools – Topic 6
  • Stress Testing – Topic 7
  • Concentration Risk Mitigation – Topic 8
  • Reporting and Monitoring – Topic 9
  • Audit Policy – Topic 10
  • Staff Training – Topic 11
  • Retention of Documentation – Topic 12

Recent updates to this product:
03/18/24 Update
Eliminate and/or modify references to the term “Troubled Debt Restructuring” (TDR) with a “Borrower Experiencing Financial Difficulty.”
01/02/24 Update
FDIC FIL-64-2023 – Advisory: Managing Commercial Real Estate Loan Concentrations in a Challenging Economic Environment
06/01/23 Update
Eliminate references to allowance for lease and loan losses (ALLL) which was replaced by current expected credit losses (CECL).

This Concentrations of Credit Policy Template (approximately 25 pages) is available to purchase from BankPolicies.com in Microsoft® Word format.

Want to ensure your purchase from BankPolicies.com remains current? Add a Product Update Protection Plan to your shopping cart to ensure that you will automatically receive an updated version every time it is revised via e-mail within one year from the last date of purchase. This timely and cost-effective solution ensures that you stay on top of federal regulatory changes and industry recommended best practices.

When updates are made you will receive detailed information regarding why the product was updated and what has changed within the product in our Product Update Notification e-mail correspondence. This enables you to make an informed decision on whether to make any changes to the policy or procedure you implemented for your financial institution from the revised template.

BankPolicies.com provides your financial institution with the best bank policy template products available in the industry. You will always be up to date with the latest changes to bank policies and never have to worry about being out of compliance with the various laws, rules and regulations issued by the Consumer Financial Protection Bureau (CFPB), Federal Deposit Insurance Corporation (FDIC), Federal Reserve, Office of the Comptroller of the Currency (OCC), or other federal regulatory bodies that may apply to your organization.

Our dedicated staff of career banking industry professionals are ready to keep your financial institution up to date with the latest bank policy standards and industry best practices. Purchase your bank policies from us today and rest easy knowing you have the right team helping you and your organization stay compliant. We look forward to earning your business for all of your bank policy needs.

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