The Journal of Lending & Credit Risk Management

Articles from Vol. 82, No. 7, April

Achieving Excellence at an Early Age
The three-year-old Central Valley Chapter is just a toddler compared with some of RMA's 's other chapters, but it has already made its mark receiving the RMA Excellence Awards in 1998 and 1999. How does a chapter put itself on the fast track? ...
Acquiring Collateral under Revised Article 9
The Rules for Attachment of a Security Interest This is the fifth in a series of occasional articles addressing the revisions to Article 9 of the Uniform Commercial Code. Subsequent articles will focus on other specific changes. The current Article...
A Senior Management Perspective: Lending & Credit Issues for the Next 18 Months
The financial modernization bill passed by Congress last year will, as expected, produce wide-ranging effects on the financial services industry. Community banks, regardless of size or location, must begin now to position themselves for success in...
Be All That You Can Be[ldots] but Don't Try to Be Everything
The implications for community banks coming from a two-part article in the Chicago Fed Letter sparked the interest of one of the Journal's editorial advisory board members. Here, James S. Lenoir, EVP of Trustmark National Bank in Jackson, Mississippi,...
Credit Derivatives: Implications for Bank Portfolio Management
The goal of a portfolio manager--regardless of whether the portfolio is composed of equities or credit assets--should be to create an "efficient" portfolio, that is, a portfolio that has minimum risk for a given level of expected spread. With equities,...
Failure to Properly Perfect a Security Interest in a General Intangible Causes $250,000 Loss for Lender
When a lender assumed that a share certificate obtained as part of an auto racing franchise was like any other share certificate, the court in In re Turley, 172 F.3d 671 (9th Cir. 1999) demonstrated the folly of that assumption. Norman Turley was...
Her Final Answer: Stay Close to the Customer
"Who wants to be a bank president and CEO?" It's doubtful that Susan C. Keating saw herself in that role when she graduated with a degree in arts and sciences from Northwestern University in 1972. And it took a lot more than a good quiz show performance...
How Desirable Are You?
What Analysts Look for when Valuing a Community Bank Certain key factors should be considered in valuing and pricing a community bank. The methodology typically used by disciplined acquirers is of value to banks on both sides of the fence. This...
How to Succeed in (Small) Business
Sure, our small business customers like good prices. But not at the sacrifice of other factors that are considered even more important. Community banks are advised to find their niche, focus on quality, and never stop innovating. The "chip" is changing...
Most Financial Service Organizations Don't Recognize the Importance of E-Business, Study Says
The majority of global financial services organizations have failed to recognize the importance of eBusiness, according to a recent study by Arthur Andersen. Entitled Thriving in the New Economy: Perception vs. Reality, the study explores the rationale...
Roger, Wilco and Out
Here's a painful true-life adventure, starring an aggressive community bank, a newly hired hot-shot, and a shifty customer. Is it necessay to know your customer? Absolutely. Is it necessary to know your employee? Even more absolutely. June 1995...
Securitize or Sink
Bid a fond farewell to "lend and hold"--nice idea, losing proposition. Let's do what we're best at and let others do the same, says the author. Institutions that successfully sell individual loans and pools of loans will be able to leverage their infrastructures...
Small Business Credit Scores in Good Times[ldots]and Bad
So what happens in a downturn?" Mark Zmiewski, director of Information Products for RMA, inter views Anna Solberg, Commercial Markets Marketing Manager at Fair, Isaac and Company about how lenders can manage the performance of portfolios decisioned...
Spring Planning 2000
One of the most important Spring Planning tasks for bankers is to ask themselves about a half-dozen tough questions. The problem, of course, is that tough questions are harder to answer. Ed Furash's discussion about risk and price warfare, capital...
The Nuts and Bolts of Finding and Keeping Great Leaders
Your mission: Find and nurture the potentially great leader, so others will follow the leader to greatness instead of going in circles. Among other things, the great leader knows that following up and providing inspiration are not one-time efforts....
The Quotable Five C's
After lacing his many articles for the Journal with relevant and provocative quotes, Strischek now complements the five C's with quotable statements from individuals inside and outside of banking. These quotes have been selected "for both their educational...
"This Old Accord"
There's been considerable discussion surrounding the reform of the 1988 Risk-Based Capital Accord. The industry has a lot at stake in the process--the opportunity to set regulatory capital to match actual risk instead of the current, arbitrary 8% across-the-board...
Weaknesses in Portfolio Management
This article is based on a talk given to RMA's London chapter in December 1999. I have been retired for three-and-a-half years and may, therefore, not be up to date with all the latest technical developments. Nevertheless, even if the occasional detail...
Which Small Business Loan Relationships Should Banks Nurture?
A simple application of rate of return analysis can help bankers to identify the most desirable borrowers. These are the relationships to nurture, since they will generate more value for the bank in the future. Using this approach can pay big dividends....