Basel III NPR on Highly Volatile CRE Loans… A Bullet Dodged!
While the original intention of this Webinar was to prepare community banks for the eventuality of having to allocate additional regulatory capital to certain commercial and mortgage loans, (a proposed regulatory mandate that passed over community banks upon actual implementation), the remaining value of this discussion is in the development of the methodology for assigning either higher capital, higher provision expense, or both, to loans the bank deems to be of higher risk, so that the institution can be more appropriately compensated for that risk.
