Problem Loan Reporting

Problem loan reporting in credit risk management involves tracking loans that borrowers are struggling to repay. This includes loans that are overdue or in default. By identifying these problem loans, financial institutions can better assess their overall risk exposure and take proactive measures, such as restructuring the loan or increasing reserves for potential losses. Effective reporting helps lenders make informed decisions about credit policies, risk mitigation strategies, and maintaining financial stability, ultimately protecting both the lender and the broader economy from excessive defaults.