Commercial Lending Review articles from January 2003

Commercial Lending Review archives from January 2003

Credit derivatives: the next big thing?(number of banks using credit derivatives is expected to grow)
January 1, 2003... Currently, only 19 of approximately 9,000 US banks are using credit derivatives. But many observers believe they could become the next important risk-management tool for financial institutions. According to Oliver Wyman & Co., "Advances in...

Credit derivatives: an overview for US banks.(Industry Overview)
January 1, 2003... Credit derivatives are financial instruments that separate credit-event risk from that of another financial instrument. Similar to interest-rate derivatives, credit derivatives are efficient and effective means of both pricing and transferring...

Accounting change for loan impairment: the effect on creditor's loan-loss policy and equity valuation.(Financial Accounting Standards Board issues statement)
January 1, 2003... This article examines the effect of Statement of Financial Accounting Standards (SFAS) No. 114, "Accounting by Creditors for Impairment of a Loan," and its amendment, SFAS No. 118, "Accounting by Creditors for Impairment of a Loan-Income...

Implementation of SFAS No. 144: accounting for the impairment or disposal of long-lived assets.(Statement of Financial Accounting Standards)
January 1, 2003... Statement of Financial Accounting Standards (SFAS) No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets," accomplishes three important objectives. First, while the basic structure of SFAS No. 121, "Accounting for the...

Fast-growing companies inch back from record low in new bank loans. (Lending Trends).
January 1, 2003... Buoyed by a flurry of renewed borrowing in the product sector, fast-growing companies made a modest third-quarter about-face from what had been a historic low in new bank loans. It is unlikely, however, that this change presages a return to...

Guarding against e-laundering of dirty money. (Electronic Commerce).
January 1, 2003... Ten years ago, it would have been difficult to imagine a world in which commerce was transacted efficiently and effectively without using cash, personal checks, or credit cards. Today, we live in this world. The Internet allows people to pay...

Guarantor's accounting and disclosure requirements for guarantees. (Accounting).(Financial Accounting Standards Board completes its re-deliberations on guarantor disclosures)
January 1, 2003... The Financial Accounting Standards Board (FASB) recently completed its re-deliberations of a proposed interpretation that would elaborate on the disclosures to be made by an issuer of a guarantee (guarantor) in its financial statements about...

Expense recognition for options could change soon. (Credit Analysis).
January 1, 2003... Precise valuation of compensatory stock options is not possible, as the IL ultimate value of the option will be determined by the future price of the stock. A market for them does not exist since they cannot be traded. Employees who receive...