A financial institution’s ability to maintain profitability through times of economic certainty or uncertainty is undoubtedly impacted by its careful management of the credit portfolio. Protiviti’s Credit Pulse is intended to provide a summary and analysis of economic indicators impacting financial institutions and the strength of their credit portfolio while providing industry-leading insights and pragmatic recommendations to address areas of weakness.
Read The Latest Credit Pulse (April 2020)
It seems so long ago now. As recently as February, the Federal Reserve indicated that the near-term economic outlook remained favorable across the Unites States, supported by low unemployment rates and modest growth in consumer spending. With the country enjoying one of the longest positive economic cycles in its history, many financial institutions had taken great care to position their organizations for tougher times. Leading organizations developed downturn readiness playbooks and implemented governance and structure designed to enable them to identify deteriorating credit conditions on the horizon and take proactive actions to withstand a downturn. However, few organizations, if any, foresaw a shift as sudden and powerful as that brought on by the COVID-19 global pandemic:
- Seismic Actions from Governments and Regulatory Authorities
- Significant Fault Lines
- How to Respond