Charge-Off Policy Standardization

Client Need: The foreign-based parent company of a $60 billion U.S. bank wanted to standardize its policies for charge-offs and non-accruals throughout all of its companies. The U.S.-based subsidiary needed assistance documenting inconsistencies between U.S. industry policies and practices compared to the proposed global standardized policy.

Solution: BenchMark Consulting recruited and surveyed 14 major clients regarding non-accrual and charge-off policies for nine different loan products. Survey results were compiled and analyzed. A report of the findings was prepared for the client.

Result: The U.S. subsidiary used the surveyed report findings to document inconsistencies in policy standardization for the U.S. and successfully retained the appropriate policies.