How the Board Shapes Credit Culture
The board of directors plays a critical role in shaping the way a bank makes credit decisions and manages credit risk, says Ryan Swope, a principal with Forvis Mazars. A bank with a strong credit culture has a clearly defined credit philosophy and risk appetite that is consistently communicated from the top of the organization. As such, the board must approve and monitor credit policies and procedures, as well as hold management accountable for enforcing good credit behaviors. Directors must also understand the makeup of the bank’s loan portfolio, as well as credit trends within that portfolio.
In this video, learn about:
- What Credit Culture Means
- What Regulators Look For
- What Directors Should Know
- How to Fix a Weak Credit Culture
This video is part of Bank Director’s Online Training Series. To learn more, view Building a Strong Credit Culture.
Ryan Swope
Ryan leads the Loan Review service line at Forvis Mazars. He has more than 20 years of experience with Forvis Mazars’ Loan Review team and manages loan review engagements and due diligence reviews for financial institutions. In addition to credit risk assessments, he provides consulting services in credit administration, cash flow analysis, loan underwriting, and loan collateral documentation.
Prior to joining Forvis Mazars, he worked in the credit department of a community bank.
Ryan is a graduate of Indiana University, Bloomington, with a B.S. degree in marketing and operations management.