Loan Portfolio Analysis

Loan Portfolio Analysis is the process of reviewing and assessing a collection of loans held by a financial institution. This analysis helps the institution understand the performance, risk, and return of its loans. By examining factors such as borrower creditworthiness, loan types, interest rates, and repayment histories, analysts identify potential issues and opportunities. The goal is to ensure the portfolio is healthy, minimize defaults, and optimize profits, ultimately contributing to the institution's financial stability and growth. Effective analysis supports informed decision-making regarding lending practices and risk management strategies.