The Risk Management Association and Automated Financial Systems have launched an independent benchmarking service for commercial lending risk exposure developed in association with eight top tier US financial firms.
The Risk Analysis Service is designed to analyse commercial loan portfolios and highlight areas of excessive risk as well as offer comparisons with industry norms. Pitched at banks with commercial credit portfolios of over $1 billion, it aims to provide information that can be used to gain further insight into commercial loan default and loss trends as well as refine risk-rating systems.
The service has been under development for the past several months in conjunction with an eight-member industry steering committee that helped to shape the design and parameters. Initially focussed on the middle market and large corporate portfolios, the benchmarking tracks segments by asset size, loan product, collateral type, industry, geography and vintage.