MAF35 Topic 8 CreditAnalysis Loan Portfolio 2015 FV (1).pptVIP

* * * * * * * * * * * * * * * * * * * Provisions of Loan Losses in Australia 请裹螺霞惟裴氓段娶胰笋叁笺挖寂彤痴伎荫谢直绣宽峡吧堵呕嚏陡社颖帜MAF305 Topic 8 CreditAnalysis Loan Portfolio 2015 FV (1)MAF305 Topic 8 CreditAnalysis Loan Portfolio 2015 FV (1) * Common Reasons for Loan Losses Collateral overvalued Personal relationship of loan officer with borrower (non-objective) – adverse selection Increasing loan without increasing collateral Not analysing borrower cash flow and repayment capacity Failure to regularly review loan status Funds not applied as represented – moral hazard Funds used outside of bank’s market area 九蛆皖如肛裂濒妊匀若鼓褥颜囤弗快甘峻葛潜衅爹汛袒森盐屁谍坞床恕虐MAF305 Topic 8 CreditAnalysis Loan Portfolio 2015 FV (1)MAF305 Topic 8 CreditAnalysis Loan Portfolio 2015 FV (1) * How to Control Loan Losses ‘Autopsy’ loan losses regularly Loan review over 90 days in default – consider non-performing loan Look at loan policies, loan officers and loan review function Securing Collateral Real property - Mortgage must be recorded with Titles Office Personal property In lender’s possession - Borrower completes pledge agreement In customer’s possession - Register charge or equitable mortgage 篙钾嫩姬咽筹灌周羊拽铬宫荒谷团秒引筒荧巍谚涩熬唯形巾蓖战莱画荔剿MAF305 Topic 8 CreditAnalysis Loan Portfolio 2015 FV (1)MAF305 Topic 8 CreditAnalysis Loan Portfolio 2015 FV (1) * Remedies for Default If loan is unsecured: Legal action for damages Application for liquidation or bankruptcy If loan is secured: Enter into possession if a mortgage Undertake a foreclosure by obtaining full title and selling off borrower’s assets Move to receivership by court appointed receiver File a creditor’s petition under Bankruptcy Act if for an individual Apply for liquidator to wind up company 栈追贞玩待顾韩待僧裙册文鄙香雄鳃敛蜂夹丹唾胎瓜奔尘墓骇拦内秆祝酝MAF305 Topic 8 CreditAnalysis Loan Portfolio 2015 FV (1)MAF305 Topic 8 CreditAnalysis Loan Portfolio 2015 FV (1) * Multiple Choice Question 5 ‘Migration analysis’ in the context of loan management refers to: A. a list of loans that need s