The Journal of Lending & Credit Risk Management

Articles from Vol. 81, No. 11, July-August

2001: A Bank Odyssey
Financial institutions invest an estimated $20 billion to $30 billion each year in information systems and information technologies. Decision-makers, challenged with unstructured problems and looking for better decision support, are behind a resurgence...
Aligned for Online
Before High-Touch Meets High-Tech, Community Banks Need Plans and Policies "Our customers appreciate our 'high-touch' relationship banking." This time-honored mantra of America's community banker remains valid. Of course, that mantra worked best...
Assessing Small Business Risk: Adopting Additional Credit-Scoring Factors Means Increased Profitability for Banks
The research group at the Institute for Innovation Research at the University of Waterloo analyzed a group of nearly 4,700 entrepreneurs/owners to isolate the key factors responsible for business survival during the first four years of operations....
"Credit Risk Rating at Large U.S. Banks" Revisited through a Visit with the Authors
"Credit Risk Rating at Large U.S. Banks," by William F. Treacy and Mark S. Carey, is a 24-page gem published in the November 1998 issue of the monthly Federal Reserve Bulletin (www.federalreserve.pubs/bulletin). It describes internally developed risk...
E-Mail Communication: Some Rules of the Road for the Information Superhighway
In the interest of effective communication, this article offers an explanation of the light and dark side of e-mail interaction, a few tips on common sense and common courtesy among e-mailers, and some suggestions for an e-mail policy. Three hundred...
Fuzzy Systems and Neuro-Computing in Credit Approval
FUZZY systems and neural networks are attracting growing interest among both researchers and practitioners. These systems offer advantages over traditional computational methods by offering greater flexibility, greater tolerance of imprecise data,...
Interest Rate Swaps an On-Balance Sheet Analog
A series designed as a quick tour of the quantitative tools used in today's financial services industry. The first article in this series reviewed the concepts of market risk and credit risk with a special focus on key factors that differentiate...
Internet Banking Is in the Future of Community Banks
In the days of typewriters and carbon paper, a community bank president noticed a copy machine in a competitor's bank. "Why would a bank need that?" he wondered. "If I really needed to make a copy, I could just walk across the street to the law office...
Leave Me Alone Redux
Data, data, who owns the data? That's the $64 million question as technology gathers, slices, dices, and offers up information to an extent unimaginable just a few years ago. Is information another form of personal property? Consumers think so, and...
Loan Document Imaging Saves Money ... and May Save the Bank!
It's a whole new ball game for document imaging and you don't have to be in the major leagues to be a player. Document imaging not only saves time, it can become an integral part of a bank's disaster recovery plan. Loan document imaging enables...
On the Trail of Fraud: The Curious Bird Nabs the Worm
Where there is intent to deceive, it is likely that a fraud will succeed to some extent. An important role in fraud detection and prevention is to learn from some of the errors committed in previous frauds and to improve upon processes to strengthen...
Portfolio Theory and Bank Lending: Avoiding Concentrations of Credit Risk through Strategic Diversification
How can a lender profitably add value using the comparative advantages to be gained from understanding its customers without becoming overly exposed to specific categories of credit risk? Portfolio management theory points to a strategy for successfully...
Staying on Course If Real Estate Nosedives
Despite signs that all systems in the economy generally remain "go," many economists remind us that real estate markets run in 10-year cycles. This article discusses some steps that real estate lenders can take now to help avoid some of the problems...
The Game's Afoot!
In pioneering loan portfolio management at Bank of Montreal, Brian Ranson paved the way for banks everywhere to play "Let's Make a Deal" without falling flat on their assets. Bank of Montreal, Canada's first chartered bank, opened for business in...
Training: Decisions, Decisions!
There are a variety of electronic options available to training managers. The key is to select what make most sense for the needs to be met. By 1996, Terry Lehmann had more than had it with traditional text-based training and testing. The 600-plus...
Webward, Ho!
In December 1998, RMA conducted its first Web-based training course for a test group of 17 bankers. Since then, the same course has been offered two more times and RMA captured data for assessment. This article chronicles those events. Distance...