Commercial Lending Review articles from March 2001

Commercial Lending Review archives from March 2001

Making Tradeoffs, Making Sense.(Brief Article)
March 22, 2001... From an early age, we learn that life is about tradeoffs: The vanilla or the chocolate? The extra hour of play or the perfect performance on the spelling text? The crisp dollar bill or the excitement of a new plastic toy? As we grow older,...

Structural Weakness in Underwriting.
March 22, 2001... What is a structurally weak loan, and what's the big deal? In 1998, in response to increasingly aggressive underwriting practices observed since 1997, the Office of the Comptroller of the Currency (OCC) issued a circular entitled "Examining...

The Value of Loan Structure: How Much Are Those Covenants Worth?
March 22, 2001... How many commercial bankers have faced a client who asked that a covenant not be included in the loan documents? Probably most. But what should the banker answer? Does the borrower know something that the lender doesn't? But what if the...

Implementing a Comprehensive Credit-Risk-Management System: The Case Study of Hanvit Bank.
March 22, 2001... In 1997 and 1998, the financial crisis that swept through Asia produced record loan losses throughout the region. Korea experienced especially acute credit problems, because the crisis followed a period of sustained high growth that had...

Electronic Contracting After e-Sign: The Impact on Commercial Loan Documentation.(electronic signatures)
March 22, 2001... In June 2000, President Clinton signed the Electronic Signatures in Global and National Commerce Act, popularly known as the e-sign law.(1) At the time, the president declared, "On-line contracts will now have the same legal force as equivalent...

Equipment Leasing: Industry Status and Trends.(Industry Overview)
March 22, 2001... The equipment leasing industry faces challenges on several fronts. New channels threaten the traditional way of conducting business. Merger and acquisition (M&A) activity has led to consolidation in the market and has created pricing pressure...

Making Your Loan Package Competitive.(commercial credit rates and fees)(Brief Article)
March 22, 2001... When acquiring debt, a company must make many decisions. The company must decide whether it is better to borrow from banks or to use the bond market. It must select the maturity. And it must determine whether it is best to pay additional...

A Better Understanding of Earnings Per Share.
March 22, 2001... Earnings per share (EPS) is perhaps the most widely used financial ratio today. Shareholders and investors use EPS to measure a company's profitability. It is compared to dividend yield to make some sense of return. Used in conjunction with...

Bank Discounting Dampens Effect of Fed Rate Cuts.(Brief Article)
March 22, 2001... The Federal Reserve Board's interest-rate cut of 50 basis points in early January 2001 followed by another 50 basis point cut on January 31 came at a good time for America's fastest-growing companies. Although fast-growing businesses typically...