Pros and cons to current methods of analyzing loan portfolios

first_img 3SHARESShareShareSharePrintMailGooglePinterestDiggRedditStumbleuponDeliciousBufferTumblr The goal of loan portfolio analysis is simple: minimizing risks for a credit union, while maximizing potential gains. That is easy enough to say. The trouble is in making it all happen, smoothly and in ways that benefit a credit union’s members.The good news: new software tools have automated a great deal of the work involved in portfolio analysis.  What had been labor intensive—and with the possibility of many human induced calculation errors—now can be had with a few mouse clicks. That’s the beauty of the new tools.Before, loans were cataloged across many pages of paper. Now a glance at a single computer screen can shed a lot of light on exactly how well this institution is fairing.That is terrific.  But understand that there also are limitations.Loan portfolio analysis is fraught with potential arguments and squabbles. continue reading »last_img

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