The RMA Journal

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

Articles from September

Business Relevance and Regulatory Compliance Are Top of Mind at GCOR V: More Than 200 Attendees Gathered for RMA's Conference amid Shifting Operational Risk Terrain
[ILLUSTRATION OMITTED] OPERATIONAL RISK IS relevant to business managers when it offers them information and practical tools to do their jobs more effectively, according to Kenneth J. Phelan, former chief risk officer of Fannie Mae. Phelan was...
From Me to You: Reflections on a Career in Lending: In This Article, Which First Appeared in the December 2004-January 2005 Issue, a Banking Veteran Offers Advice to Help Young Lenders Find Their Way, While Also Striking Chords with Bankers Who Have Been through the Decades and Cycles
[ILLUSTRATION OMITTED] WHEN YOU'VE BEEN around, and around, the block, you learn a few things. One is that others who have been around that block even more have experiences to share that can help you develop that all-important, but sometimes neglected,...
Government Incentives Ignite Growth: Wind, Solar, and Biofuels Offer Distinct Challenges and Opportunities for Lenders
[ILLUSTRATION OMITTED] ALTERNATIVE ENERGY--which is created from renewable sources such as wind, the sun, and biofuels--represents an emerging opportunity for lenders, thanks to government assistance and the shift toward environmentally sound energy...
Implementing Macroeconomic Credit Stress Testing: Lessons Learned: U.S. and EU Banks Face Challenges in Creating Stress-Testing Programs. Here Are Some Tips for Developing Credible Programs Tailored to a Banks's Individual Risk Profile
[ILLUSTRATION OMITTED] MACROECONOMIC CREDIT STRESS testing is becoming a cornerstone of bank risk management and capital-adequacy requirements throughout the world. Nineteen of the largest U.S. banks were involved in the scenario-based Supervisory...
Is a Lender Liable for Imposing an Incompetent Financial Manager on the Borrower?
FAMM STEEL, INC. was a steel fabricating company in Rindge, New Hampshire. It was family-owned and run by Ann Gavin as president and her father, Paul Gavin, as vice president. Desiring to expand, the company obtained a $6.1 million credit from Sovereign...
Let's Be Careful out There
IT HAS BEEN about three years since the financial crisis shook the economy, and our industry continues to operate in an uncertain environment. Yes, profitability is up at many institutions, but growth is tepid. And it is in this weak but recovering...
Maximize Recovery from REO: Understanding and Properly Managing Real Estate Owned Can Help a Community Bank Get the Most from a Sale
[ILLUSTRATION OMITTED] FOR MOST COMMUNITY banks, the past two years have been a war zone of problem real estate credits, foreclosures, bankruptcies, and losses. The capital accounts of many banks have been hit hard by the Great Recession. Nearly...
Operational Risk and the New Regulatory Landscape: In an Interview Conducted This May in London, Neeta Atkar, Former Group Operational Risk Director at Lloyds Banking Group, Discussed Operational Risk Practices with RMA Journal Editor Kathleen M. Beans and RMA Relationship Consultant Mark Heaton. Atkar Has Served on RMA's Operational Risk Council and Was a Speaker at GCOR in May
RMA Journal: Regulatory issues are a dominant concern today. How do you think operational risk will evolve in the wake of Basel III? Atkar: That's a difficult question. Clearly, there will be material capital implications that typically grab the...
Realism in Lending: Anchor Your Bank in a Sound Credit Culture
Realism in Lending: Anchor Your Bank in a Sound Credit Culture By Henry Mueller and William W. Sihler [ILLUSTRATION OMITTED] HENRY MUELLER SUMS up the point of this 50-page booklet with the following opening: "A sound credit culture...
Restoring Confidence in the Irish Banking System: A Regulator at the Central Bank of Ireland Discusses the Causes of the Country's Banking Crisis and the Steps Being Taken to Strengthen Its Risk Management
PETER NYBERG'S "Report of the Commission of Investigation into the Banking Sector in Ireland" (1) details the circumstances leading up to one of the most severe banking crises in world history. (2) This crisis so far has cost banks operating in the...
Risk Culture, the Regulators, and RMA: RMA Board Chair John J. Wixted Jr. Says RMA Membership Benefits Individuals, Institutions, and the Industry. the Chief Risk Officer and Executive Vice President of PNC Manage Also Discusses Risk Culture, Regulatory Challenges, and the Role of RMA during This Interview with RMA Journal Editor Kathleen M. Beans
[ILLUSTRATION OMITTED] Beans: You've been a director of supervision and regulation at both the Chicago and Cleveland Federal Reserve Banks and you've held several senior risk positions with PNC, including your current position. How does your experience...
The Good, the Bad, and the 1031 Exchange: Deferring Capital Gains Taxes on Property Sales Can Have Unforeseen Consequences
[ILLUSTRATION OMITTED] RELATIONSHIP BANKING HAS never been more in vogue than in the aftermath of the financial crisis. Despite the view that banking is a commodity service with few differences among competitors, financial institutions that focus...
Using Assignments of Rents and Leases Effectively: In the Process of Foreclosing, Your Assignment of Rents and Leases Rights May Help Maximize Your Recovery
[ILLUSTRATION OMITTED] YOUR BANK IS in the process of foreclosing on a commercial property. Should it appoint a receiver, as most lenders do, or should it exercise its rights under an assignment of rents and leases? An absolute and unconditional...
What You Need to Know about Utilization Risk: Borrowers Using Credit for Inappropriate or Unauthorized Purposes Must Be Monitored and Managed
[ILLUSTRATION OMITTED] BANKS GO TO great lengths in their due diligence before authorizing credit commitments to their commercial borrowers. They take securities, collaterals, and guarantees and stipulate covenants, all aimed at building necessary...