The Journal of Lending & Credit Risk Management articles from November 1998

The Journal of Lending & Credit Risk Management archives from November 1998

A Message from the Stock Market
November 1, 1998... A once fearless stock market is now unnerved, as are many investors and bankers. Most predicted a market correction, but few expected it this fast and with such ferocity. Bank stocks have been hit particularly hard. While the Dow Jones has...

Goldman Sachs' Risk Wranglers: An Interview with Allen J. Levinson
November 1, 1998... Who says there are no more frontiers? Certainly not a member of Goldman Sachs' Financial Institutions Industry Resource Group, managed by Allen J. Levinson, whose pioneering problem-solving activities have taken them into a range of risk...

What's Wrong with the U.S. Personal Bankruptcy Law and How to Reform It
November 1, 1998... Bankruptcy may serve not only as a path to a fresh start but also as a magic carpet ride to financial gain for a high proportion of U.S. households. Well-off households gain much more from filing for bankruptcy than those at the middle or the...

How to Identify and Evaluate Industry Risk in a Loan Portfolio: A Five-Step Approach
November 1, 1998... Industry analysis has become an important component of portfolio management practices at many financial institutions. The key to analyzing industry risk at the portfolio level is having a clear and comprehensive approach that articulates...

Risk Ratings Revisited
November 1, 1998... A bank's risk management system is in jeopardy when its risk-rating system is substandard. Citing data culled from Beating the Odds. . .A Community Banker's Guide to Risk Management, the author contends that many banks' risk-rating systems need...

Get in the Driver's Seat of Lending to Automobile Dealerships
November 1, 1998... Identifying the various types of credit structures and their associated risks is key to understanding and lending to automobile dealerships. This article looks at issues and financial methodology pertinent to automobile retailing. Next month,...

Comprehensive Income: Gauging a Company's Exposure to Risk
November 1, 1998... A new financial statement disclosure, comprehensive income, is required beginning with annual reports issued for calendar 1998. Comprehensive income is defined as net income plus or minus other comprehensive income (OCI). OCI captures changes in...

The Shareholder's Perspective
November 1, 1998... Part I of this two-part article described a framework for attributing economic capital that employs a debtholder's view of risk. In this framework, an institution's risk is expressed as a probability distribution of future net asset values, and...

Lender Productivity
November 1, 1998... Cheap deposits are increasingly scarce. Banks are turning to market funding and FHLB advances to fill their deposit gap. Commercial loan net interest margins are narrowing. Loan risk has expanded to the edges of prudence, as risk warfare among...