Loan Portfolio Management: Comptroller’s Handbook April 1998

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Lending is the principal business activity for most commercial banks. The loan portfolio is typically the largest asset and the predominant source of revenue. As such, it is one of the greets sources of risk to a banks safety and soundness. Whether due to lax credit standards, poor portfolio risk manage, or weakness in the economy, loan portfolio problems have historically been the major cause of bank losses and failures.

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Lending is the principal business activity for most commercial banks. The loan portfolio is typically the largest asset and the predominant source of revenue. As such, it is one of the greets sources of risk to a banks safety and soundness. Whether due to lax credit standards, poor portfolio risk manage, or weakness in the economy, loan portfolio problems have historically been the major cause of bank losses and failures.

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