Commercial Lending Review articles from September 2005

Commercial Lending Review archives from September 2005

Balancing credit management and relationship building: achieving and maintaining an effective balance between credit quality and credit quantity.
September 1, 2005... There is an area of art in commercial lending that deals with maintaining a delicate balance between the time it takes to manage credit effectively while reserving enough time for the commercial lending staff to work on relationship building....

Building a better understanding of financial reports: an overview of financial reporting principles for loan officers.
September 1, 2005... While there is no single statute or code to provide detailed guidance on accounting and financial reporting in the United States, audited financial statements issued by both public and private companies must conform with generally accepted...

What every ratio user should know about assets: financial statement information is subject to legitimate estimates and timing decisions as well as illegitimate manipulation.
September 1, 2005... Legitimate reporting choices can contribute variability to the computation of balance-sheet assets. When evaluating ratios, credit analysts must take these potential gray areas into account. Ratio analysis facilitates the process of...

Earnings management: how to identify contributing factors: asset quality, sales growth and depreciation contain clues.
September 1, 2005... Accounting irregularities became a household phrase during the 1998 Cendant scandal. Shortly after the Cendant story unfolded, Securities and Exchange Commission (SEC) chairman Arthur Levitt would make his now-famous speech in which he said,...

Lessons from microlending for U.S. banks: could microlending increase opportunity for unbanked populations?(SMALL BUSINESS BANKING)
September 1, 2005... Microlending, also known as microfinance, has become a phenomenon of the developing world. Microloans are fairly small loans made to (relatively) low-income borrowers to start, to expand, perhaps even to maintain a very small business, known as...

FASB issues new statement on reporting accounting changes and error corrections: changes in accounting estimates also are within the scope of the new statement.(ACCOUNTING)
September 1, 2005... The Financial Accounting Standards Board (FASB) recently issued Statement No. 154, Accounting Changes and Error Corrections a replacement of APB Opinion No. 20 and FASB Statement No. 3 (FAS-154). FAS-154 replaces Accounting Principles Board...

Jack Welch's "road map" to Winning: "leaders celebrate," writes the retired chief of GE.(BOOKS)
September 1, 2005... On the very striking dust jacket of Jack Welch's WINNING, filled with the retired General Electric executive's reflections on managing both corporate organizations and personal careers, Welch's smiling face and penetrating eyes stare directly...