We are witnessing progressively improving trends for the banking sector, but the high debt levels of corporates make the banks susceptible to credit deterioration and defaults, especially if growth slows down. To tackle this banks are toughening credit underwriting and proactively monitoring the financial health of their customers. This is also due to the increased oversight of regulators, mandating the ongoing monitoring of credit risk and credit exposures throughout the lifecycle of loans. We are delighted to share that Acuity has helped a number of global and regional banks in credit portfolio management and loss mitigation by generating in-depth analysis and insights, performing frequent credit reviews of borrowers, monitoring covenants, performing stress testing and using early warning indicators.

In this edition of Lending Wire, we share some of the latest developments defining the industry, including banks’ divergent views on cryptocurrencies, lending transformations and global debt accumulation.

Rajul Sood, Global Head of Lending Solutions