Commercial Lending Review articles from July 2007

Commercial Lending Review archives from July 2007

The past is no precedent for U.S. Banks: banks should take steps toward more proactive management of their credit risk, balance sheets and costs.
July 1, 2007... On the face of it, 2006 was another good year for the banking industry. Profit growth exceeded 12 percent, while loans grew at 11 percent. In fact, banks have enjoyed a five-year run of strong performance and growth. The past decade has in...

Commercial loan origination: ripe for improvement: investment in technology and process redesign can improve operational efficiency and customer satisfaction, among many benefits.
July 1, 2007... Commercial lending in the United States is growing at a double-digit rate. As of December 31, 2006, outstandings of financial institutions in the market exceeded $2.5 billion (U.S.D). At the same time, net-interest margins were at 20-year lows,...

How much debt is right for your deal? The impact of market innovations on debt capacity.
July 1, 2007... Record buyout volumes have made leveraged finance highly attractive for investors. Aggressive capital structures, however, have become an increasing concern. According to Standard and Poor's (S&P), 2006 average debt levels as a multiple to...

Maximizing recovery of distressed debt *: lenders must understand the full scope of enforcement remedies.
July 1, 2007... The past several years have been a busy time for financial markets. The economy has exhibited consistent economic growth, and an unprecedented amount of capital has been made available for investment. As a result, new debt structures, new debt...

Fair value accounting broadened with FAS-159: more relevance, less consistency expected with new standard.(ACCOUNTING)
July 1, 2007... The Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. 159, The Fair Value Option for Financial Assets and Financial Liabilities (FAS-159), in February 2007. This standard creates a fair value...

Documentation insights from the Auditing profession: what commercial lenders can learn from Enron and the documentation provisions of the Sarbanes-Oxley Act.(LOAN DOCUMENTATION)
July 1, 2007... Commercial loan officers understand the importance of documentation in making lending decisions, detailing terms of agreements and securing collateral. Despite its importance and the emphasis usually placed on compliance with regulatory and...

Financial statement effects of accounting for options: how will the new accounting for options affect costs and cash flows?(CREDIT ANALYSIS)
July 1, 2007... The complexity of some share-based payment ("SBP") plans confuses both employees and financial statement users. Under Statement of Financial Accounting Standards (SFAS) No. 123(R), Share-Based Payment (FAS-123[R]), which became effective in...