Misakes that Asset Managers Make – The Importance of On-site Professional Business Valuations for Disressed Entities Michael Koeppel · June 11, 2018 Commercial lending has significant competitive pressures. In response, many banks have loosened underwriting standards and relaxed procedures to become more “borrower friendly”. To compound the risks, banks also remain susceptible to diminishing collateral values, limited due diligence and business decline. The key to mitigating loss is to act quickly and to know the current value of the loan portfolio. Traditionally, bank internal loan review departments have relied on a delinquency- based approach to evaluate loan portfolios. However, Banks should require a periodic, in depth analysis to correlate loan and collateral values and to judge the

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