New York, NY, USA
July 2, 2008

Preparing for the credit downturn

Since banks have become accustomed to a low default environment, they run the risk of not being adequately prepared for a downturn, despite having invested significantly in credit risk measurement techniques in recent years.

Preparing for the credit downturn discusses what banks can do to prepare for the next credit downturn. It outlines some of the management structures that need to be in place and provides seven recommendations aimed at ensuring that levers for managing credit risk exposure are effective and appropriate.

A credit downturn also offers an upside, such as opportunities to acquire weaker competitors, expand distressed debt trading, and offer third party workout services. To seize these opportunities, a bank will have to have its own house in order and be in a position of relative strength.

The report is 16 pages and has three figures. A table of contents is available online.

 

Members of Celent's Retail Banking, Wholesale Banking, Wealth Management, Institutional Securities & Investments, and Finance, Risk & Compliance research services can download the report electronically by clicking on the icon to the left.  Non-members should contact info@celent.com for more information.

 

About Celent

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally experienced analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis.

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