The RMA Journal articles from November 2000

The RMA Journal archives from November 2000

Strategic Planning
November 1, 2000... By now, most of us have completed our budget and planning processes for 2001. As a part of that, many will have gone through the strategic planning process in determining what we will look like five to ten years out. A trick question that I used...

Grab a Niche. FAST!
November 1, 2000... An Interview with Bill Scholl "If you're looking for the best credit card in the country, your search is over," says the opening Web page of pulaskibank.com. A long-time Arkansas law has affected the way banks headquartered in the state set...

They're Ready
November 1, 2000... OCC examiners expect the commercial loan portfolios of 44% of the 69 largest national banks to grow riskier, compared with 39% last year, reported the American Banker this fall. The agency also said it expects retail loan risk to increase at 24%...

Are You Getting Enough Stress?
November 1, 2000... How to get more from your stress tests Portfolio stress testing has been called difficult, confusing, and unhelpful, as well as intuitive, valuable, and efficient. The purpose of this article is to shed some light on the path to getting more...

The Future of Risk-Adjusted Credit Pricing in Financial Institutions
November 1, 2000... The current tool of choice for many institutions opting for risk-adjusted credit pricing, RAROC, doesn't reconcile the prices of loans with those of similar instruments available in the market, such as bonds, other loans, or credit derivatives....

Changes in Government Contracting and How They Affect Banks
November 1, 2000... Changes in the way the federal government procures goods and services from the private sector are continual. Most of those changes are designed to benefit the government, even if they adversely affect some segments of the government contracting...

Municipal Leasing with Proper Precautions, a Smart Move
November 1, 2000... The use of leases by municipalities to fund the purchase of vital equipment have been proven to be a very low-risk investment for banks that provide a higher-yielding tax-exempt obligation than similar bond investments. However, the bank must be...

Supervisory Standards for Internal Rating Systems
November 1, 2000... In describing the emerging framework of standards that will be used as critical reference points by Federal Reserve examiners in evaluating the strength of banks' internal rating systems, this article seeks to share regulatory thinking at a...

EDF Estimation: A "Test-Deck" Exercise
November 1, 2000... In June 1999, the Basel Committee on Banking released a Consultative Paper on proposed revisions to its 1988 Capital Accord establishing minimum capital requirements. Much has transpired since 1988, as technology has allowed banks' internal...

Validating Previous Appraisals and Evaluations
November 1, 2000... The validity of an appraisal of real estate property is in jeopardy if changes to the property or its surroundings have a negative effect. A bank may or may not be able to use the appraisal for a subsequent transaction. This article offers...

Fair Lending and Predatory Lending Analytics for Lenders
November 1, 2000... This article offers insights on quantitative methods that can be used by lenders to mitigate fair lending risks that emerge from both the traditional fair lending issues of consistency in the underwriting and pricing decision and the more recent...

Credit Risk
November 1, 2000... Credit Cannot Rest on Tradition In last month's Management Strategies, Cynthia Glassman reviewed the current trends towards an integrated risk management framework. A principal component of all financial services institution's risk management...

Minnesota Chapter Develops Commercial Lending Academy
November 1, 2000... Recognizing the bleak outlook for hiring new analysts to become commercial bankers, the Minnesota Chapter's award-winning Education Committee did something about it and recently celebrated the success of the first class. It is a familiar...

Tales of WHOA!
November 1, 2000... Lender Loses Right to Enforce Guaranty Despite Clause Giving It Full Discretion in Applying Payments Enforcement of a guaranty was denied in American National Bank and Trust Company of Chicago v. Mack, 724 N.E.2d 1014 (Ill.App.1st Dist. 2000)...

Don't Let Your Internet Customer Become a Statistic
November 1, 2000... Volumes have been written on the subject of customer acquisition and retention. Virtually all of the collective wisdom supports the notion that keeping an existing customer is a lot less costly than finding a new one. This is as true in banking...

FTC Letter Is Not Binding.(Federal Trade Commission comments on credit checks; use of online banking expected to skyrocket)(Brief Article)
November 1, 2000... In late July, the Federal Trade Commission issued a nonbinding letter suggesting that banks get written permission to do credit cheeks on business owners who personally guarantee or apply for a commercial loan. This nonbinding staff...

Where Is Your Bank on the Sigmoid Curve?
November 1, 2000... Since becoming CEO of GE in 1981, Jack Welch has created more shareholder value than anyone in history. Recently named Fortune's "Manager of the Century," Welch offers six rules for success, the first of which is "control your own destiny or...