Credit Risk Trends and Challenges for Community Banks

Chief credit officers at small, locally owned and operated banks are contending with a myriad of issues, ranging from the rise of fraud and the pros and cons of AI to fluctuating tariffs, commercial real estate obstacles, and emerging risks like private credit.

Sophisticated fraudsters, aided and abetted by artificial intelligence, are among the top threats facing community banks—which typically have under $10 billion in assets. David M. Chajkowski, the EVP and chief credit officer …