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The Bank Regulators’ New Guidance on Management of IRR and CRE Loan Workouts  


Author:  Bradley K. Sabel.; Gregg L. Rozansky.


Source: Volume 24, Number 01, September/October 2010 , pp.36-46(11)




Journal of Taxation and Regulation of Financial Institutions

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Abstract: 

The new interest rate risk guidance sets out in greater detail than before the bank regulators’ view on effective techniques and practices for monitoring and mitigating risks from adverse moves in interest rates. The commercial real estate loan statement addresses loan workout arrangements and allows additional flexibility in dealing with troubled credits to avoid unnecessary write-downs or charge-offs. Both sets of guidance are intended to help banking institutions navigate emerging risks along the path to economic recovery.

Keywords: commercial real estate (CRE), loan workouts, interest rate risk (IRR), risk management

Affiliations:  1: Shearman & Sterling LLP; 2: Shearman & Sterling LLP.

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