Banking and Finance > Loans and Mortgages

The following tests apply to accounts intended for commercial and personal loans.

Analysis

  • Stratify balances and create a summary file
  • Analyse balances and interest rates by risk rating
  • Analyse the file over internal accounts and customer account types
  • Analyse interest margin on accounts by type
  • Analyse load portfolio by servicing officer, location, loan type, etc.
  • Review and analyse underlying collateral on loans secured by accounts receivable and inventory
  • Summarise load portfolio information based on data in any field
  • Summarise loans by collateral and purpose to analyse portfolio risk

Calculations

  • Cast (or total) accrued interest, balance
  • Reprove arrears calculations and reporting
  • Check interest and service fee calculations

Exception Tests

  • Identify staff loans
  • Identify large loans
  • Identify loans with unusual interest rates
  • Identify balances greater than original advance
  • Identify negative balances
  • Custom reports on new, renewed and past due loans
  • Other useful tests include stratifying interest rates against each risk rating. Generally higher risk loans should bear a higher rate of interest. The analysis followed by exception testing can pick up anomalies or branches/individuals who are either risky or particularly prudent in their lending.

Matching and Comparing

  • Using cross-matching techniques can pick up multiple loans to the same address
  • Compare balances at different periods to identify movements