Commercial Lending Review articles from March 2000

Commercial Lending Review archives from March 2000

Glass Half Empty or Half Full.(Brief Article)
March 22, 2000... The mix of articles in this issue of the Commercial Lending Review epitomizes the question facing all bankers today: Is that glass half empty or half full? Whether you're optimistic or pessimistic about the prospects for economic expansion,...

Small Businesses and Online Lending.(Statistical Data Included)
March 22, 2000... The Internet is an important new delivery channel for small-business banking. Particularly for the most popular and standard types of credit products, the Internet can help financial institutions increase volume and drive down costs. Lenders...

FASB's Statement on Derivatives: The Impact on Bankers.(Financial Accounting Standards Board)(Statistical Data Included)
March 22, 2000... Financial Accounting Standards Board (FASB) Statement of Financial Accounting Standards (SFAS) No. 133, "Accounting for Derivative Instruments and Hedging Activities," is the most controversial and complex accounting standard to be issued in...

The Evolution of Credit-Risk Management.
March 22, 2000... The capacity of the financial markets to adapt to change is quite astonishing. The arrival of new products (and new risks) is so common that such events cause not only little fanfare but also little consideration of how such change came about....

Credit Risk Management and New Modeling Tools.
March 22, 2000... Traditional commercial lending is undergoing very radical changes. The new perspective of traders is driving this change. Traders see a loan as a somewhat liquid asset whose risk/return contribution to the overall portfolio can be measured....

Small-Business Banking: How to be a Winner.(Statistical Data Included)
March 22, 2000... The banking industry is losing opportunities to win the hearts, minds, and loyalty of small businesses. Why? Because we continue to think like bankers instead of retailers. The small-business financial services market generates $180 billion...

Financial Services Modernization and Corporate Finance.(Financial Services Modernization Act of 1999)
March 22, 2000... The recently adopted financial services modernization legislation (the Gramm-Leach-Bliley Act) is best known for having "repealed" the Glass-Steagall Act of 1933, which separated the commercial and investment banking industries. Technically,...

The Elusive Credit Crunch: A Strategy for Surviving the Good Times.
March 22, 2000... A wise lender once said, "The only certain thing about a forecast is that it will not happen." Current forecasts abound with previews of loan-quality problems arising from the exuberance of recent years. Commercial loan losses are up while...

Risk Management as a Source of Competitive Advantage.
March 22, 2000... During the 1990s, banks' risk profiles have been changing. While commercial lending has grown steadily, more and more customers have moved to the capital markets to raise funds. Customers with the wherewithal to move have, by definition, been...

Revised Article Nine and the Middle-Market Lender.(secured transactions of commerical lenders)
March 22, 2000... The Uniform Commercial Code (UCC) is a uniform law proposed by its sponsoring agencies, the American Law Institute (ALI) and the National Conference of Commissioners on Uniform State Laws (NCCUSL), with further input and approval provided by...

Analyzing Loan Portfolios with Mixture Models.
March 22, 2000... Many everyday products are a combination of ingredients. A cake mix consists of baking powder, shortening, flour, sugar, and water. Concrete is made up of sand, water, and cement. Gasoline is a mixture of hydrocarbons and additives such as...

Holding Auditors Accountable for Negligence.
March 22, 2000... Prudent lenders regularly require and review borrowers' audited financial statements, both before extending credit and as part of the regular monitoring of outstanding loans. For sizable long-term loans, lenders also routinely obtain auditors'...

Credit Process Basics.
March 22, 2000... The bank regulators have been issuing warnings about loosening credit standards for the last couple of years. Their cautions remind bankers of the importance of basic credit principles, including maintaining consistency in the credit process in...

Y2K Mop-Up.(accounting for subsequent events involving year 2000 computer issue)(Brief Article)
March 22, 2000... Unique events require unique accounting, and Y2K was no exception. Although the 2000 date change already seems like a dim memory, some accounting repercussions live on. While massive electrical and communications shutdowns, shortages of food...