Banking
Showing 225–240 of 600 results
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3 ways to minimize risk when lending to seasonal businesses
February / March 2017
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 372
Abstract: Some borrowers, such as landscapers, hotels and toy manufacturers, experience significant seasonal fluctuations in their financial performance. But seasonal businesses still require working capital throughout the year, and often turn to banks for support during the off season. This article discusses three approaches that can help lenders assess and manage the credit risk associated with lending to seasonal businesses.
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Trust but verify: Evaluate financial restatements carefully
February / March 2017
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 641
Abstract: Misinterpretation of accounting standards or mistakes may cause businesses to reissue their financial statements. But financial restatements also can be a sign of incompetence or fraud. This article explains that lenders need to closely examine financial restatements to accurately evaluate their borrowers’ situations. The article looks at the most common reasons for financial restatements, pointing out that lenders need to dig deeper to determine whether restatements are simply correcting mistakes or potentially fraudulent.
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Timing is everything – How to measure liquidity using the cash conversion cycle
February / March 2017
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 582
Abstract: To measure liquidity, lenders traditionally look to the balance sheet and compute the current or quick ratio. This article discusses another, lesser-known metric called the cash conversion cycle (CCC), using an example to illustrate how the CCC metric functions. The article notes that using the CCC and other liquidity benchmarks together with other tools, such as leverage, growth and profitability metrics, can help a lender gain a comprehensive risk assessment.
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Is your borrower worth the risk? SWOT analysis provides answers
February / March 2017
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 815
Abstract: An analysis of a prospective borrower’s strengths, weaknesses, opportunities and threats (SWOT) can reveal whether the company is vulnerable to competitors or potential threats. This article offers some guidance to help lenders decide whether to continue to work with a troubled borrower to fix problem areas. A brief sidebar notes the importance of determining whether the borrower is willing, or unwilling, to remedy any issues revealed by the SWOT analysis.
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Bank Wire – Beware of UDAAP
Winter 2017
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 442
Abstract: This summary of recent developments in banking looks at how the Consumer Financial Protection Bureau has been cracking down on banking practices it views as unlawful under the Dodd-Frank Act’s regulations on unfair, deceptive or abusive acts or practices. In addition, the article cites the evidence supporting use of a fraud hotline and explains updated OCC guidance on corporate and risk governance.
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Don’t compare apples to oranges – Evaluate borrowers accurately by normalizing financial statements
Winter 2017
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 651
Abstract: Borrowers’ accounting practices can vary widely. An accounting tool called “normalizing” can help adjust income statements and balance sheets to compensate for companies’ different accounting methods. Failing to normalize financial statements may result in faulty lending decisions. This article uses some examples to illustrate how normalizing works and the difference it can make in helping a lender who is evaluating a borrower accurately compare its practices to those of a competitor or to industry benchmarks.
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New rules on customer due diligence – FinCEN answers frequently asked questions about beneficial ownership
Winter 2017
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 599
Abstract: As a result of an action in May 2016 by the Financial Crimes Enforcement Network (FinCEN), financial institutions will be required to verify the identities of the beneficial owners of their legal-entity customers when the owners open new accounts. This article answers some questions regarding the new due diligence rules, such as which institutions are covered and who a beneficial owner is. The article also notes that banks should have a plan to ensure that the policies and procedures are in place to collect information about the beneficial owners of legal-entity customers.
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Cybersecurity takes the spotlight
Winter 2017
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 927
Abstract: Federal and state regulators are increasingly scrutinizing banks’ information security efforts. This article points out that, in light of this heightened scrutiny, banks should review, and if necessary, update their cybersecurity programs. The article explains what examiners look for, including risk identification, risk measurement and risk mitigation. A sidebar discusses increased state regulation of cybersecurity.
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In the News – Beware of non-GAAP metrics
Year End 2016
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 435
Abstract: Many companies report financial metrics that don’t conform to U.S. GAAP in their business plans and other promotional materials. This article explains how these figures can sometimes cast a more favorable light on the borrower’s historic and prospective operations than the GAAP figures do. And it provides some questions for lenders to ask their borrowers about whether the use of non-GAAP figures makes sense — or whether it could potentially be misleading.
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What does it mean to operate “lean”?
Year End 2016
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 624
Abstract: Thirty years ago, “lean” manufacturing was an innovative concept — and it’s still relevant today. Lenders may need to remind their manufacturing borrowers that the secret to staying lean is continuous improvement. This article provides a brief overview of the four cornerstones for building a lean foundation.
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Nothing ventured, nothing gained – Reap the rewards of signing on new customers, but beware of the risks
Year End 2016
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 602
Abstract: Working with existing borrowers to help grow their businesses can be rewarding. But sometimes you need to branch out and pursue new lending opportunities. When you do, it’s critical to “dial up” your due diligence procedures. This article discusses the importance of site visits, Internet and social media searches, and industry research before committing to a new borrower.
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Let’s read the footnotes
Year End 2016
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 869
Abstract: Financial statement footnotes can provide a wealth of useful information. Experienced lenders know to look beyond the numbers and consider qualitative details and narrative disclosures, as well as what’s not being said. This article provides some examples of disclosures (or omissions of information) that lenders should watch out for, as well as ways to find more details. A sidebar discusses the rising popularity of sustainability disclosures.
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In the News – What the new DOL rules could mean for your borrowers
October / November 2016
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 449
Abstract: The Department of Labor issued new final overtime rules that update the thresholds for classifying workers as nonexempt and highly compensated. This article outlines changes that will go into effect on December 1 and legitimate ways to minimize the adverse effects.
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Budget vs. actual: How reliable are management’s estimates?
October / November 2016
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 670
Abstract: Borrowers often submit forecasts and budgets when they’re applying for a loan. But these estimates may be off the mark for various reasons. This article guides lenders on how to assess whether these estimates seem reasonable and to compare them to actual results in subsequent reporting periods.
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Agreed upon procedures – These customized engagements can provide valuable insight
October / November 2016
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 541
Abstract: An “agreed upon procedures” (AUP) engagement uses similar procedures to an audit, but on a smaller and limited scale and with no assurance from the CPA. This article uses a hypothetical example to explain how a customized AUP engagement differs from an audit and can be used to identify specific problems that require immediate action.
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The butcher, the baker, the candlestick maker – Adopting a customized due diligence approach
October / November 2016
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 885
Abstract: Most loan portfolios include businesses of all shapes and sizes. Before reviewing a borrower’s financial statements, it’s essential to consider the industry in which it operates. This article provides a five-factor approach to evaluating competitive forces that may help lenders anticipate future opportunities and threats. A sidebar shows how a lender might apply a scorecard approach to rate three hypothetical borrowers: a butcher, a baker and a candlestick maker.