Percentage of Commercial Loans Extended (Maturity Date)

Metric Details & Benchmarking Report Download

KPI Benchmarks : Percentage of Commercial Loans Extended (Maturity Date)

  • Benchmark Range
  • Benchmark Average
  • Benchmark Sample Size (n) 27

* Is High or Low Best: Lower is Better


Percentage of Commercial Loans Extended (Maturity Date)

KPI Details

Percentage of Commercial Loans Extended (Maturity Date) measures the dollar amount of outstanding commercial loans managed by the financial institution that have been restructured (troubled debt restructuring or modification) in relation to the total dollar amount of outstanding commercial loans managed by the institution over the same period of time. Higher values for this metric can indicate that more borrowers have requested loan extensions, which has a negative effect on the amount of available commercial capital the institution has for future lending activities. High values, furthermore, extends the amount of time it takes to receive principal and interest payments on commercial loans from the institution's borrowers.

KPI Definition

The dollar amount of outstanding commercial loans managed by the financial institution that have been restructured (troubled debt restructuring or modification) divided by the total dollar amount of outstanding commercial loans managed by the institution over the same period of time, as a percentage.

KPI Best Practices

  • Regularly train underwriting employees on credit policies and provide them with clear documentation on those policies
  • Proactively and clearly explain to borrowers all stipulations of financial covenants before closing loan
  • Create underwriting rules for loans to riskier industry sectors (e.g., real estate, restaurants, etc.)

KPI Calculation Instructions Percentage of Commercial Loans Extended (Maturity Date)?

Two values are used to calculate this KPI: (1) the dollar amount of the outstanding commercial loans balance managed by the financial institution that has been restructured (troubled debt restructuring or modification), and (2) the total dollar amount of outstanding commercial loans managed at the same point in time. Consider all loans that have been modified from the original close and fund dates to be restructured. Measure the dollar amount of all outstanding commercial loans, including performing and non-performing loans.

KPI Formula :

(Dollar Amount of Outstanding Commercial Loans Managed That Have Been Restructured / Total Dollar Amount of Outstanding Commercial Loans Managed) * 100

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