Journal of Commercial Lending articles from May 1993

Journal of Commercial Lending archives from May 1993

Risk Management and the Credit Culture - a Necessary Interaction
May 1, 1993... A bank's business is to take risks and manage them. It succeeds when the risks taken are reasonable and commensurate with the bank's resources and competence. Unfortunately, the rewards for risk management can be slim. The average return on assets...

Training and Evaluating Small Business Lenders in Large Banks
May 1, 1993... The research and survey for this article were undertaken to learn and document how large banks are preparing their small business loan officers to be more knowledgeable about their customers and their bank's products and services. In order to...

Guidelines for Structuring Loans
May 1, 1993... The purpose of my article is to offer assistance to lenders on the basic elements of loan structuring and monitoring. These include identifying the client's needs, selecting and setting covenants, negotiating, and monitoring covenants....

Lending to Biotech Firms
May 1, 1993... In the history of the banking industry, its heroes have been those who found opportunity in unchartered financial waters. For example, A.P. Giannini, founder of Bank of America, found a way to extend installment loans to car buyers in the 1930s....

Risks in Agribusiness Lending
May 1, 1993... Agribusiness is like the rest of the business world, undergoing significant transformations that portend new lending risks. This opening comment does not imply that risks are getting larger or smaller; it is mentioned only to point out that the...

The Banker-Borrower Relationship: Ingredients for Success
May 1, 1993... The banker-borrower relationship covers much more than a lender-creditor relationship. The banker also acts as a supplier, an advisor and confidant, an information source, and a stabilizing influence. Banks supply credit to their customers, their...

The Meaning, Measurement, and Control of Credit Concentration
May 1, 1993... "Almost without exception, the most serious banking problems encountered in recent years have grown out of old-fashioned difficulties with bad loans and excessive concentrations."(1) This comment was made by Gerald Corrigan in October 1992, during...