Commercial Lending Review articles

Recent articles from Commercial Lending Review

Potential impact of the subprime lending crisis on community banks: both good and bad possibilities loom if the credit cycle takes a downturn.(COMMUNITY BANKING)
January 1, 2008... As this article was being written, the subprime mortgage lending crisis was in the news every day. The bad news was coming from mortgage banking firms, large banks with investment banking losses from subprime mortgage-backed securities and companies involved in the housing industry, which...

Credit offers to small and medium-size businesses: an overview of considerations that influence the decision process of an active lender with regard to commercial loans and trade credit.
January 1, 2008... Commercial loans and trade credit are necessary to allow companies to go beyond the limitations of the reinvestment of earnings and to avoid financing by issuing stock. Their importance can be illustrated by the fact that in 1993, nearly half (49.63 percent) of the assets of U.S. small and...

Asset-based lending at the end of the era of easy credit: best practices for a return to credit discipline.(Company overview)
January 1, 2008... Over the past decade, global economic expansion and money supply growth unleashed a seemingly endless flood of liquidity into the United States. Fueled by low interest rates and unregulated, easy credit, much of the incremental liquidity was channeled through hedge funds and private equity...

Suppliers' vulnerability from extensions of credit to retailer major customers: unpaid or slowly paying receivables are another risk posed by customers that account for 10 percent or more of revenue.
January 1, 2008... Increased concentration at the retail level has made it more likely that significant portions of a supplier's sales are made to two or three large customers. As a result, suppliers have become more vulnerable to sizable, sudden reductions or cutoffs in sales. In addition, increased retailer...

Marketing science: the new chemistry in middle-market commercial banking: banks can use analytically based strategies to improve relationship manager productivity.
January 1, 2008... A long-standing challenge in middle-market commercial banking is making the best use relationship managers (RMs). Directly interacting with customers, these field representatives play the most visible role in generating balances and revenues. But they also represent some of the most...