EisnerAmper LLP Banking Practice Works With Banks to Meet the Challenges of Increased Risk and Regulation

- Loan portfolios of particular concern in turbulent economy -

Dec 08, 2010, 10:00 ET from EisnerAmper LLP

NEW YORK, Dec. 8, 2010 /PRNewswire/ -- Banks are operating under a cloud of uncertainty fueled by loan portfolio risk, increased regulation, and new accounting standards.  EisnerAmper LLP recently expanded its banking practice through a business combination and is uniquely positioned to offer banks specialized expertise.  

"To say that banks face an increasingly complex environment is an understatement," said Bridget Day, partner and practice leader of EisnerAmper's Banking Group. "Evaluating risk in their loan portfolios has become difficult with the past two years of unrest, making each decision that much more important.  Traditional evaluation methods such as past history have become obsolete. In this sector, history isn't history anymore."

Day and the banking practice partners at EisnerAmper see some major areas of concern for banks operating in today's shifting regulatory and economic landscape:    

  • The turmoil of the past two years has made assessing loan portfolio risk nearly impossible, and the quality of the items "on the books" has never been under more scrutiny.  Banks used to be able to rely on a customer's history as a solid indicator of risk.  In order to gain a more accurate picture, banks are now looking at more recent data and trends, which may not offer the best information for making decisions about future viability of the customer's business.
  • Capital requirements have shifted, and more private equity money has entered the industry as banks are being bought.
  • With the elimination of the Office of Thrift Supervision, certain banks face a new set of regulators.  The time required to get transaction approvals has increased.  There's more pressure than in the past for banks, as the new layers of review are difficult to navigate.
  • New accounting standards with respect to participations in larger transactions require banks to share risk evenly, complicating deals.

"Banks are looking for help liaising with regulators and re-configuring their internal processes to alleviate concerns," said Day. "They need to position themselves carefully in the marketplace to address today's issues and prepare for what lies ahead."

Regional banks in particular have felt the strain. "The success of community banks is tightly tied to the success of their geographic market.  For example, every bank has felt the impact of the commercial building industry's struggles," said Day.  "The direction these banks take with their lending in the next six months will be an important indicator of economic recovery."

EisnerAmper is prepared to help financial sector clients address these and other demands arising from today's regulatory and market dynamics, with attestation, internal audit, valuation, compliance and risk advisory services.  The firm was recently formed through a combination of two leading regional accounting firms, Eisner LLP and Amper, Politziner & Mattia LLP, both of which had extensive public company practices.  The combination created the leading regional firm in the greater New York metropolitan region.  

"The combination of our practices has given our firm an expanded range of professional competencies and a significant talent pool comparable to national firms.  Our traditional focus on serving middle market clients is still a strong driver in our success as well," Day noted.  

About EisnerAmper LLP

EisnerAmper is one of the premier accounting and business advisory firms in the United States.  EisnerAmper provides a wide array of accounting, audit, tax and business advisory services to a diverse client base including publicly traded and privately held companies, not-for-profit organizations and individuals.  For more information, please visit EisnerAmper at www.eisneramper.com.  

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SOURCE EisnerAmper LLP