Commercial Lending Review articles from November 2007

Commercial Lending Review archives from November 2007

Bankruptcy trends: what's next in the restructuring world? 2008 may be remembered as the year bankruptcy became active once again.
November 1, 2007... The expansion of the credit cycle and the surge in global liquidity has created a significant decrease in financial restructurings, defaults and Chapter 11 filings in the last few years. Based on Moody's estimates, global speculative-grade...

Small business loan origination: spanning the continuum: banks should be looking at origination systems to maximize profits from small business lending.
November 1, 2007... With consumer lending, residential mortgages and commercial real estate volumes declining, many banks are shifting their lending focus to small business, a segment that has been growing steadily in the United States during the century's first...

Loan documents can be compromised by poor loan administration: lender action or inaction can result in the loss of important rights.
November 1, 2007... In commercial lending, it is critically important that proper documentation (loan agreement, security agreement, guaranty, etc.) be drafted to protect the lender. After all, at closing the lender is giving money to the borrower, and all the...

The small business disconnect: the needs of small businesses have been and continue to be a mystery to many banks.(Company overview)
November 1, 2007... For many years, the small business customer segment (defined as businesses generating under US$10 million in annual revenue) was stuck in the no-man's land between retail and corporate banking. Banks did not have the tools or the desire to...

The mortgage meltdown and the loan-loss reserve account: banks should tap existing resources to set and justify loan-loss reserves.
November 1, 2007... One of the primary reasons for "qualified" bank audits has been the continued reliance by banks on an aggregate forward loss estimate as the basis for setting the current period loan-loss reserve provisions. This estimate, usually 1.10 percent...

Secondary market offers another option to manage loan portfolios: an overview of the loan sale process, step-by-step.(PORTFOLIO MANAGEMENT)
November 1, 2007... As rising subprime default rates continue to spread havoc around the world, many financial institutions are being forced to overhaul their loan portfolios to reassure regulators, investors and the public. That normally challenging task is made...

FASB amends FIN-48: measurement, reporting and disclosure of income tax positions in financial reporting: FIN-48 will require entities to reduce managerial reporting discretion on all tax positions taken.(ACCOUNTING)
November 1, 2007... The Financial Accounting Standards Board (FASB) issued Interpretation No. 48, Accounting for Uncertainty in Income Taxes, an interpretation of FASB Statement No. 109 (FIN-48), (1) to provide guidance for recognizing and measuring tax positions...