Credit Quality & Red Flags for Deteriorating Loans
July 29, 2026Credit unions often recognize loan problems too late because early warning signs are subtle, fragmented, or misunderstood, leading to reactive rather than proactive credit risk management. Join us for an informative presentation as we provide a practical overview of current credit quality and how to identify early warning signs of deterioration within a loan portfolio. We’ll explore the indicators that signal emerging borrower distress, structural weaknesses, or declining repayment capacity. In addition, we’ll discuss how to recognize behavioral, financial, and collateral‑related red flags, interpret financial trends that may forecast future problems, and apply sound credit risk principles to help strengthen portfolio oversight.
Learning Objectives
Upon completion of this program, participants should be able to:
- Describe how to assess credit quality using key financial, operational, and structural indicators.
- Recognize early red flags that signal potential loan deterioration.
- Apply practical techniques for monitoring borrower performance.
- Employ effective credit risk judgment to help identify and address potential emerging loan issues.