The Journal of Lending & Credit Risk Management

Articles from Vol. 81, No. 1, September

Analysis of Finance Company Ratios in 1997
A number of finance companies enjoyed another year of record earnings in 1997, driven by increased business volume, low borrowing costs, and a generally robust economy. Although asset quality continued to erode in the consumer sector as the level of...
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Bank Liquidity, Short Memories & Inescapable Basics
Commercial banking is a world infrastructure profession with an ancient past. Debt propels progress, and bankers have been the traditional intermediaries. The overextension of credit also has been around for some time, with accounts of banking houses...
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Capital Allocation Reform Critical to Modernization
Stock market jitters aside, the banking industry continues to enjoy record earnings in perhaps the most favorable economic environment of this century. What better time to examine core public policy issues governing the financial services industry? Significantly,...
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CMBS Market Beckons Banks Seeking to Manage Risk and Boost ROE
Return on Equity (ROE) - and finding new ways to improve it - has become a key benchmark for many banks in today's market. While shareholders and the financial markets clearly care about a bank's performance in terms of return on assets (ROA), the return...
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Encouraging Lenders to Stop, Look, Listen
An Address to RMA/CBA Conference Participants by Julie Williams, (Acting) Comptroller of the Currency For nearly a century, RMA has been a focal point for education, exchange of ideas, and exploration of new issues affecting the lending business of...
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High Loan-to-Value Mortgages: Problem or Cure?
At the same time that some financial institutions have embraced high loan-to-value mortgage loans as a safe and profitable avenue to a new revenue stream, others have kept HLTV at arm's length. Meanwhile, the accelerated growth of HLTV lending in the...
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Internet Mania
The stock market is in love with the Internet. Well, maybe not the Internet as it is but certainly the promise that it holds. This year, for example, the Hambrecht and Quist Internet Stock Index soared from 140.6 on June 1 to 196.47 on July 8. Internet...
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Loose Underwriting Sinks Ships
Silton Waters had captained a dredge for the last decade along the rivers emptying into the Gulf of Mexico. His brother and father had been urging him to go into business for himself. This idea developed strong possibilities when his brother offered...
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Managing Capital Resources Efficiently to Optimize Shareholder Value
Historical Mismanagement of Capital Managing the bank's capital to invest in businesses or assets is not simply an advantage, but a business imperative. Lessons learned in the past two decades prompted regulatory. and technology changes that encouraged...
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Mortgage Industry: Boom or Bust?
The mortgage business differs from most other industries in that its fortunes are tied to macro developments rather than internal events. For example, a mortgage company cannot generate a product like Windows 98[R] to stimulate sales. It must await a...
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The Debtholder's Perspective
Increasingly sophisticated risk measurement tools have evolved to help financial institutions measure market risk (value-at-risk measurement tools), credit risk (expected and unexpected loss measurement tools), and insurance risk (dynamic financial analysis...
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The Economy: It Ain't over 'Til It's Over
As inflation remains relatively benign, we ask if problems in Asia signal the end of our growing economy. The short answer is no. The cost to the U.S. economy of severe problems in Asia have been overestimated, while the fundamental strength of our economy...
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The Economy Looks Good, but Watch Out
The toughest job that economists have had recently is to come up with the next best adjective to describe what is going on. Indeed, by almost any measure, conditions are fabulous. Because of strong growth, the jobless rate - 4.5% - is at a generational...
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