Rising Delinquencies & Credit Risk – What Bank CFOs & CROs Must Do Now

As economic uncertainty persists, with pandemic-era excess savings largely exhausted, interest rates remaining elevated relative to historical norms and portions of the commercial real estate market continuing to experience stress, many banks are facing heightened delinquency and credit-risk pressures. Credit card and auto loan delinquency rates have climbed materially from post-pandemic lows, while certain commercial real estate segments remain under pressure.

For many institutions, this is creating a multifaceted operational, accounting and risk-management challenge that directly affects financial reporting, reserve adequacy and executive decision-making. Finance and risk leaders are increasingly responsible for ensuring their organizations are prepared for a more complex credit environment.

CFOs and CROs must now ask whether their loan accounting systems, reserving processes and internal controls are built to manage what's next.

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