Commercial Lending Review articles from July 2004

Commercial Lending Review archives from July 2004

Lessons from the rest of the community bank.
July 1, 2004... In a community bank, commercial lending and, by association, commercial credit analysis have traditionally been considered very prestigious areas of employment. The loans and customer relationships are often larger than those of even wealthy...

Audit committee best practices and earnings.
July 1, 2004... Recent accounting scandals and corporate bankruptcies have raised questions regarding the usefulness of corporate earnings in financial decisions. If corporate earnings reported through the financial statements fail to capture the underlying...

FASB's new consolidation model and its implications for financial statement users.(Financial Accounting Standards Board)
July 1, 2004... In the wake of the spectacular collapse of Enron Corporation in fall 2001, the Financial Accounting Standards Board (FASB) recognized that at least some of the responsibility for the questionable accounting treatment that allowed Enron to move...

Perfecting security interests in financial assets.(financial assets as collateral)
July 1, 2004... Lenders usually take a security interest in the assets of their borrowers to secure repayment. When financial assets are taken as collateral, problems often arise. Financial assets include bank accounts, brokerage accounts, negotiable...

Comparison of rates and maturities for loans.
July 1, 2004... Businesses are faced with a myriad of choices when obtaining loans. This article focuses on one decision. Many times a borrower is faced with the decision of selecting a shorter-maturity loan with a given rate or a longer-maturity loan with a...

A paradigm shift in small-business lending.(Small Business)(small business credit scoring)
July 1, 2004... Until recently, relationships and bank reputation were considered the primary factors in bank competition for small-business loans. With the advent of small-business credit scoring (SBCS), however, there has been a paradigm shift in...

Pro forma financial statements for loan evaluation.(Credit Analysis)(financial projections)
July 1, 2004... In the March 2002 issue of Commercial Lending Review ("Financial Projections: A Useful Tool for Lenders"), Vincent DiCara discussed the advantages of financial projections: Many lenders either ignore or dismiss the relevance and...

Troubled borrowers and intellectual asset management.(Workouts)
July 1, 2004... Even when business seems strong, it's a good idea to prepare for the bad times with what-if worst-case scenarios. For lenders, that means creating a safety net to help guard against the tough times that can hit even reliable borrowers. ...

The hidden psychology of a corporate turnaround.(Turnarounds)(turnaround specialist)
July 1, 2004... Psychological considerations and dynamics between a troubled company and its secured creditors affect the turnaround process in many ways. This story is untold largely because discussions of distressed firms and the efforts made to resolve...

FASB and IASB support convergence of accounting standards.(Accounting)(International Accounting Standards Board)(Financial Accounting Standards Board)
July 1, 2004... The Financial Accounting Standards Board (FASB) recently issued exposure drafts of four proposed Statements of Financial Accounting Standards that would improve US generally accepted accounting principles (GAAP) and converge US accounting...