Journal of Commercial Lending articles from April 1993

Journal of Commercial Lending archives from April 1993

Danger: Riskier Loans Ahead
April 1, 1993... In the post-World War II decades, commercial lending was a major profitable product line of banks. Reasons for such high profitability appeared to be that: 1. U.S. businesses led the world in their product lines. Because loans to these firms...

The Lender's Plague: Contingent Liability Risk
April 1, 1993... In the past three years, how many of your charged-off loans were the result of unforeseen risks caused by events seemingly unrelated to the business or the investment being financed? How many well-underwritten credit decisions were sabotaged by...

Risk Hunt: A Bank Self-Risk Examination
April 1, 1993... Risk is inherent and essential to banking. A bank is a risk intermediary.(1) A bank assumes or restructures the risks of its customers. A simple example of this is the taking of deposits. A more sophisticated example is an interest rate swap....

Good Faith: How Much Communication Must You Have with a Guarantor?
April 1, 1993... Without question, the crux of commercial lending is the borrower's ability to repay sums with interest in a timely fashion according to agreed terms. The borrower's ability to repay is a primary concern, but following closely is the lender's...

Technology Update. Automating Early Warning Detection
April 1, 1993... Navigators, scientists, meteorologists, and lenders share a common objective: the search for signals that can aid in predicting what lies ahead. Fundamental changes in the banking industry and the economy have shortened the time required to...

Personal Management Strategy for Improving Banking Expertise: A True Story
April 1, 1993... "Kate, I feel like I'm drowning. It's scary and frustrating and overwhelming, but mainly it all seems so hopeless. I mean, do you see things getting better anytime soon?" Kate leaned back in her chair and considered her answer. Roger had been...