The RMA Journal

Covers loans, risk management techniques, and analysis of insurance.

Articles from September

10 Ways to Protect Your Internet Banking Site: Bankers Must Be Vigilant in Protecting Their Institutions and Customers from Online Fraudsters
[ILLUSTRATION OMITTED] AS MORE PEOPLE go online to do their banking, criminals see greater opportunities for theft. They see openings for fraud in the form of unwary newcomers to online banking and in the use of increasingly sophisticated malicious...
Asset-Based Lending Worth Another Look: Lenders and Their Borrowers Are Finding This Flexible Financing Option More Beneficial Than Burdensome
BOB HOPE ONCE said a bank is a place that will lend you money if you can prove you don't need it. Luckily for businesses that do need money--and, let's face it, most do these days--asset-based lenders are willing to extend credit when conventional...
Assisted Living Communities: How an Aging Population, Health Care Reform, and Changes in State Regulations Will Continue to Drive Growth
ASSISTED LIVING COMMUNITIES are an important component of the long-term care system. The industry provides services to more than 1 million Americans living in an estimated 36,000 facilities across the country, according to the Assisted Living Federation...
Back to Basics
I have been in community banking for more than 20 years, but I have never seen anything like the pickle we bankers have gotten ourselves into. We really went overboard for the past 10 years, didn't we? It was a great ride, but here we are. The new...
"Community Banks in Crisis: How They Got in and How They'll Get Out" Vaughn Pearson, May 2010
[ILLUSTRATION OMITTED] Vaughn Pearson's "Community Banks in Crisis: How They Got in and How They'll Get Out" was an excellent article comparing the last banking crisis to the current. It placed a lot of emphasis on the CRE fundamentals that have...
Compensation Committee: Meet Your New Best Friend-The Chief Risk Officer
[ILLUSTRATION OMITTED] In a banking world of toxic assets, I fear that the environment has gone toxic, too. No, not the air we breathe, but the distrust of all things financial. With the latest allegations of Wall Street wrongdoing, it seems the...
Credit Risk Benchmarks from the RMA/AFS Risk Analysis Service
We are pleased to provide first-quarter 2010 metrics for this Journal feature, which provides an up-to-date view of middle market credit quality and trends. Comparing portfolio composition and performance to industry benchmarks is one of the keys to...
FASBS Mark-to-Market Proposal: Bad for Banking, Bad for the Economy
UNDER A PROPOSAL issued recently by the Financial Accounting Standards Board (FASB), banks would be required to value assets on their balance sheets, including loans, using a fair value approach. The proposed rule is bad for the industry and bad for...
FDIC Cannot Be Restrained from Exercising Its Receivership Powers
BANK OF AMERICA National Association v. Colonial Bank (1) raised the question of whether the FDIC could be restrained from disposing of property it held as receiver of a failed bank. Prior to August 13, 2009, Colonial Bank held a series of mortgage...
'It's a People Business': RMA Chair David Coxon Says Banks Can Thrive and Regain the Public's Trust by Emphasizing the Personal Touch. in an Interview with Kathleen M. Beans, Editor of the RMA Journal, Coxon Says Regulatory Implementation Will Strain Bank Resources, Especially in Small Community Banks
[ILLUSTRATION OMITTED] Beans: Tell us about your banking career. Why did you choose banking for a profession? Coxon: I would say banking chose me. I started in 1974. when some banks, in order to get a foothold in the market, were expanding their...
New Perspectives in Analyzing Real Estate Developer Dinancial Statements
[ILLUSTRATION OMITTED] This article, the second in a seven-part series, originally ran in the June 2002 issue of The RMA Journal, yet its insights into analyzing real estate developer financial statements are as valid today as they were then. This...
Not So Fast! Sometimes It Pays to Get a Second Opinion
A BANK CLIENT recently asked my firm to review appraisals on a portfolio of five fast-food restaurants. At first glance, the reviews appeared routine. The appraised values were below $250,000, and the reports showed a number of improved sales and rent...
Protect Your Bank from Lender Liability Claims: Follow the Terms of the Loan Documents and Your Bank's Internal Procedures, Document Everything, and Act in Good Faith
[ILLUSTRATION OMITTED] Bankers can help protect their institutions from lender liability claims by complying with loan document terms and their own internal procedures, documenting all communications with the borrower, and generally acting in good...
RMA's Commercial Real Estate Assessment Competence Is King: The CRE Assessment Offers Banks a Fast and Effective Way to Evaluate the Lending Staff's Knowledge and Competence
[ILLUSTRATION OMITTED] A FRIEND WHO is an oral surgeon recently told me with a laugh that he removed the wisdom tooth of a patient who is "a certified marimba instructor." We live in an age of certifications, licenses, and assessments, and there...
The Commercial Real Estate Tsunami: A Survival Guide for Lenders, Owners, Buyers, and Brokers
The Commercial Real Estate Tsunami: A Survival Guide for Lenders, Owners, Buyers, and Brokers by Tony Wood (John Wiley & Sons, Inc., Hoboken N.J., 2010, 215pages, ISBN 978-0-470-62682-5) [ILLUSTRATION OMITTED] Author Tony...
The State of Commercial Real Estate: Four Lenders Offer Perspectives from Their Markets: In an Interview with RMA Credit Risk Director Jim Nelson, Four Credit Officers Discuss Commercial Real Estate Challenges in Their Markets
[ILLUSTRATION OMITTED] THE VALUE OF commercial real estate has declined by as much as 40% from its peak a couple of years ago, according to a report from Moody's. Four RMA members who manage their institutions' commercial real estate portfolios...
Your Bank and the European Debt Crisis: RMA's Former Director of Market Risk Analyzes the European Debt Crisis and What It Means for North American Institutions
[ILLUSTRATION OMITTED] "Countries don't go bust." --Walter B. Wriston, former chairman, Citibank For many Journal readers, the European debt crisis may seem as far away as Iceland and as complicated as the spelling of its famous volcano. But...