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Banking Industry Solutions

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The Challenge

Today, banks are struggling to address these fundamental questions and challenges.

  • How many risk rating grades should the bank have?
  • What is an appropriate distribution of loans across the risk-rated grades?
  • There are no automated systems to validate or give out warning signals prior to sanction, indicating the deficiencies in the credit proposals.
  • Risk Rating or Obligor Rating differs from one loan officer to another.
  • Time taken for risk rating assignment differs from one officer to another.
  • There is no mechanism for permitting the officer or manager to override the risk rating with justifiable reasons.
  • The sanctioning authority cannot make changes in the rating made by the loan officer.