PHILADELPHIA,
PA (June 24, 2020) – The Risk Management Association (RMA) and AFS today announced
the launch of a monthly “Commercial Credit Bulletin” that will illuminate
trends and insights for the benefit of credit risk management practitioners as
they navigate an ever-changing economic landscape.
“The
Commercial Credit Quality Bulletin” will leverage a successful 17-year
partnership between RMA and AFS that includes their Risk Analysis Service (RAS)
benchmarking tool for credit risk analysis.
RAS allows participants to perform actionable
comparisons of their own data with that of peer banks and the industry across
multiple asset types and segmentations. The RAS database includes 710,000 commercial loans and shows trends
across delinquency, nonaccrual, industry, geography, and loan size and type. These
crucial analytics, which are not available anywhere else in the industry, are
now updated monthly, allowing RAS participants to track
changes in commercial credit quality performance in a far more expedited
fashion. With the
credit cycle now turning rapidly, the monthly RAS allows banks to quickly
implement risk mitigation techniques and improve risk reporting.
The inaugural issue of the “Commercial
Credit Quality Bulletin” notes that delinquent C&I loans recently
spiked to their highest levels in the history of the RAS program as the economy
was jolted by the COVID-19 pandemic. However, despite this deterioration in
delinquencies, nonaccruing and criticized loans remained little changed through
the end of May 2020, with banks apparently “taking a wait-and-see approach to
gauge whether or not borrowers can bounce back.” The Bulletin is available at
no charge to RMA members and non-members.
“RMA
and AFS are committed to providing relevant, timely, and practical credit risk
solutions to banks,” said John Shain, President at AFS. “Combining the
strengths of each to offer information and insight, RMA and AFS are ideally
situated for collaborations aimed at identifying and responding to the credit
risk needs of financial institutions.”
“The
information produced through the RMA-AFS partnership is always valuable,” said RMA
President and CEO Nancy Foster. “That is especially the case during times of
economic stress like what we are experiencing right now.”
“I am
proud of the resources the RMA-AFS partnership has provided over the years,”
Foster said, “and I am looking forward to the insights that will be shared each
month in the ‘Commercial Credit Quality Bulletin.’”
About
RMA
Founded in 1914, The Risk
Management Association is a not-for-profit, member-driven professional
association whose sole purpose is to advance the use of sound risk management
principles in the financial services industry. RMA promotes an enterprise
approach to risk management that focuses on credit risk, market risk, and
operational risk. Headquartered in Philadelphia, Pennsylvania, RMA has 1,900
institutional members that include banks of all sizes as well as nonbank
financial institutions. They are represented in the Association by 18,500
individuals located throughout North America, Europe, Australia, and
Asia/Pacific.
Media
Contacts
Stephen Krasowski, skrasowski@rmahq.org,
215-446-4095
Frank Devlin, fdevlin@rmahq.org,
215-446-4137
About
AFS
Automated
Financial Systems, Inc. (AFS) is the global leader in providing
real-time, end-to-end commercial lending solutions to the world’s top-tier
institutions. Solely dedicated to the financial industry, AFS is uniquely
positioned to understand our client’s business and technology objectives,
evidenced by our solutions processing more than $2.5 trillion in commercial,
CRE and syndicated loans daily. In addition to our technology solutions, AFS has drawn from our experience in the marketplace to
earn the reputation of trusted advisors throughout the industry. Drawing on the
most powerful benchmarking analytic and reporting services available, AFS
Business Intelligence provides tactics and insight that are wholly unique,
offering innovative reporting solutions. AFS is headquartered in Exton,
Pennsylvania, with offices in Vienna, Austria and Brussels, Belgium. Please
visit www.afsvision.com.