Bank Accounting & Finance articles from September 2000

Bank Accounting & Finance archives from September 2000

For A/L Excellence, Look Beyond First Conclusions.(Brief Article)
September 22, 2000... Four articles in this issue of Bank Accounting & Finance show the need to look beyond initial, face-value conclusions in evaluating asset/liability management choices. In "Putting the Management Back in A/LM," John Segerstrom proposes that...

Correction.
September 22, 2000... Exhibits 1, 2, 4 in "Seven Challenges to Implementing Shareholder Value Management" in Bank Accounting & Finance, Spring 2000, which were attributed to The Capital Markets Company are the property of Capital Market Risk Advisors, Inc.

Putting the Management Back in A/LM.(asset-liability management)
September 22, 2000... Management is defined as the ongoing discretionary exercise of authority based on experience (past), information (present), and expectation (future) in the meeting of a specific responsibility. I'll focus here on the second leg (the...

Making A/L Management Performance Count.(asset-liability management)
September 22, 2000... Many asset/liability (A/L) managers suffer from a Rodney Dangerfield personality disorder. Internally they feel they are in the control seat of the entire financial intermediation process. After all, where would lenders and deposit gatherers be...

Is There a Place for Balance-Sheet Ratios in the Management of Interest-Rate Risk?
September 22, 2000... Market and book measures of interest--rate risk may provide complementary information about thrift's performance. A regression model shows that both gap measures of interest-rate risk and a market-value model are significant predictors of...

Bank-Owned Life Insurance and Balance-Sheet Management.
September 22, 2000... Bank owned life insurance (BOLI) has recently become a topic of high interest for bank financial managers. Discussion normally first centers around BOLI as a superior solution for funding future obligated benefits. This is an appropriate...

Risk Management in the Internet Age.
September 22, 2000... The patterns of business-to-business (B2B) relationships and transactions are being fundamentally reshaped by the revolutionary impact of Internet-enabled commerce. As a crucial enabler of B2B activities, the corporate-lending and...

Improving the Effectiveness of Audit Committees.
September 22, 2000... In response to concerns expressed by the Securities and Exchange Commission (SEC) staff and others about the quality of financial reporting, the New York Stock Exchange (NYSE) and the National Association of Securities Dealers (NASD) sponsored...

Overcoming the Obstacles to Implementing Activity-Based Costing.
September 22, 2000... Activity-based costing (ABC) projects often fail because project managers ignore the cardinal rule: It is better to be approximately correct than to be precisely inaccurate. When it comes to ABC, close enough is not only good enough; close...

Bank Mergers: The Case for Selling at the Bottom.
September 22, 2000... Is this a good time to sell a bank? The recent dearth of deals would suggest it isn't. But for sellers whose shareholders intend to remain invested in the buyer's stock, we think this may be an excellent time to sell. Our analysis suggests that...

EITF Addresses Internet Accounting Issues.
September 22, 2000... The number of financial institutions offering Internet-based services and entering into strategic e-commerce alliances has undergone a rapid and significant growth similar to that of other companies of the Internet economy. This boom has not...

Two Court Decisions Address Deferral of Income and Expenses.(accounting for loan origination fees and credit card annual fees)
September 22, 2000... Two court decisions of particular interest to banks and other financial institutions came down recently. In May, the United States Court of Appeals for the Third Circuit issued its PNC Bancorp [1] decision dealing with loan origination costs....

Use of Electronic Media.(Securities and Exchange Commission's rules for electronic delivery of documents to investors)
September 22, 2000... On April 28, 2000, the Securities and Exchange Commission (SEC) issued an Interpretation on the use of electronic media by securities issuers and market intermediaries. The Interpretation addresses the use of electronic media in the following...

Do We Need New Economics for the New Economy?
September 22, 2000... If you went to college when I did, Class of 1966, or even when I taught, mostly in the 1980s, then you know that economies just don't grow for nine consecutive years, unless there is a war or something. You see, economic forces tend to be...