Banking
Showing 497–512 of 600 results
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Risk checklist – 7 liabilities worth uncovering
June / July 2010
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 395
Abstract: Unearthing not-so-obvious risk and liabilities is multilayered: Lenders should perform industry risk analyses, interview management, request additional documentation and pay attention to business community word-of-mouth. This article poses seven questions meant to help lenders uncover some of the potential risks and liabilities that can compromise debt service.
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Down economy invites fraud – Lender due diligence is a deterrent
June / July 2010
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 681
Abstract: Instances of fraud rise during down economies, making fraud awareness and detection critical — not only for business owners, but also for lenders. They need to look out for the “fraud triangle,” a set of conditions that invite malfeasance, along with signs indicating that fraud may already be underway. And lower-level employees shouldn’t be the only object of scrutiny — C-level fraud, in which owners and managers have the authority to override internal controls, is trickier and more costly.
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Appreciate the art, science of valuation
June / July 2010
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 956
Abstract: Lenders often have a stake in private company mergers and acquisitions, so it’s important that they know whether the target’s price is reasonable. Procuring a professional appraisal upfront can mean the difference between a long-term lending relationship and default. To help make informed lending decisions, lenders should know the standards of value used by appraisers, along with their valuation methodologies. A sidebar to this article points out the dangers of relying on generic valuation formulas.
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Market Niche Insider – Are startups worth the risk?
April / May 2010
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 430
Abstract: A popular urban myth is that 90% of new businesses fail, but the reality is quite different. According to the U.S. Department of Commerce, for example, seven out of every 10 startups survive at least two years and about half reach the five-year mark (not counting adequate businesses that are voluntarily closed or are sold). To improve their odds for successful startup lending, lenders need to carefully scrutinize the borrower’s macroeconomic matters, the caliber of the entrepreneur, and the business plan.
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A matter of opinion – What audit opinion lingo suggests about your borrower
April / May 2010
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 543
Abstract: Audit opinion letters present clues to the worthiness of potential borrowers. The type of opinion expressed — unqualified, qualified, adverse or disclaimer — may have serious implications about the audit’s compliance with accounting rules and the borrower’s ability to operate as a going concern. It’s important for lenders to know what’s in the audit opinion letter, and how to regard each of the four different kinds of opinions.
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Appraisal reports – A recipe worth knowing
April / May 2010
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 760
Abstract: Long before a client’s appraisal report is prepared, much work has gone into arriving at the value of the company. The valuation process will vary according to the business being examined, but some practices are common. Appraisers often rely on three common approaches when valuing a business, but may use values from other sources to reconcile against their own analyses. They also must decide, on a case-by-case basis, the extent to which adjustments apply, and carefully scan appraisal appendices in search of important information.
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Surviving bankruptcy in the supply chain
April / May 2010
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 810
Abstract: Healthy borrowers require strong supply chains. Initially, a weak supplier might mean increased costs, decreased availability of materials and production delays. Battle-weary, shrunken supply chains also can retard borrowers’ long-term ability to ramp up production when the economy improves. But, because lenders know how to evaluate financial performance, it’s important that they share financial analysis resources and techniques with their borrowers and educate them about the early warning signs of supplier insolvency. A sidebar discusses how auto dealers can thrive in spite of manufacturers’ woes.
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4 points to remember about D&O insurance
Spring 2010
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 529
Abstract: Last year’s so-called bailout of some of the nation’s largest banks created an excess of taxpayer ill will. To avoid similar misgivings among their customers, now’s an optimal time for banks to review their directors & officers (D&O) liability protection. It’s important to distinguish between the three parts of a typical policy, and keep in mind that broad coverage is desirable; limits should reflect the bank’s needs; and the insurance application should be accurate.
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Regulatory developments that affect your bottom line
Spring 2010
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 694
Abstract: Federal and state regulatory agencies can have a significant impact on a bank’s bottom line, so it’s important to monitor their activities. Doing so can reveal opportunities to boost — or situations that shrink — the bottom line. This article discusses three recent regulatory developments: Regulation R, which defines the extent to which a bank’s securities activities are subject to SEC oversight; state enterprise zones; and whether FDIC premium deductions will be permitted.
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Model behavior – Is your ALM model capturing your bank’s risks?
Spring 2010
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 444
Abstract: Asset-liability management (ALM) is a critical activity for banks — not just for meeting regulators’ expectations, but also as a strategic tool for controlling risk and enhancing performance. In today’s high-risk environment, it’s critical for a bank’s board of directors or asset and liability committee to take a proactive approach to ALM. There are a variety of ALM modeling software programs available, but the type of model and level of sophistication that’s right for a particular bank depends on the bank’s size, complexity, business model, risk profile and other characteristics.
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CRE loan workout guidelines support process
Spring 2010
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 812
Abstract: Community banks with high concentrations of commercial real estate (CRE) loans face a dilemma: Even though it may be in the best interest of both bank and borrower to modify or restructure a troubled CRE loan, workouts may also create a risk that the loan will be adversely classified by bank examiners. And this can have a negative impact on the bank’s earnings, liquidity and capital. However, guidance issued last October from the federal banking agencies can help banks develop prudent workout strategies that will minimize adverse financial impact. A sidebar discusses whether a modified CRE loan constitutes a troubled debt restructuring.
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Market Niche Insider – Down but not out – How to assess construction companies during a recession
February / March 2010
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 425
Abstract: In uncertain times, it’s important that lenders investigate what stopgap measures their clients have taken to stay afloat. Besides cutting back materials scrap and overhead costs, or even personnel, contractors can trim the fat by converting fixed costs into variable costs. It’s also important to check a borrower’s job-costing methods and frequency, and to review their monthly “completed jobs” and “jobs in progress” reports to evaluate performance. Finally, it’s important that the contractor not overlook potentially lucrative change orders.
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CPA audits – Concern about “going concern”
February / March 2010
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 723
Abstract: When auditing a company’s financial statements, CPAs must consider whether the “going concern” assumption in the reports is on target — and if the company is, indeed, expected to continue to operate in the year ahead. For a commercial banker granting loans, CPAs’ conclusions about businesses’ financial health can help identify companies at risk of loan default. This article describes what goes into making a going-concern assumption.
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Don’t bank on book value – There may be more to fixed assets than meets the eye
February / March 2010
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 568
Abstract: Borrowers often pledge fixed assets — such as real estate and equipment — as loan collateral. But there could be many reasons that the book values reported on a customer’s balance sheets are greater than their current market values. To some extent, management can massage estimates to avoid booking an impairment loss. Beyond asset impairment, a borrower’s balance sheet may be “off” if management fails to maintain an accurate fixed asset ledger. In today’s volatile marketplace, it’s imperative to keep a close watch on fixed assets, because they represent the largest category of investments for capital-intensive borrowers.
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Financial statements – Are you comparing melons to kumquats?
February / March 2010
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 725
Abstract: It may be tempting to compare two (or more) borrowers in the same industry. But blind comparisons can be misleading. Privately held firms often view earnings differently than public companies do, and S and C corporations differ in how they’re taxed and how they pay shareholder-managers. Cash vs. accrual accounting, along with discretionary accounting methods, also can affect financial reporting. A sidebar to this article explains that, while lenders might benchmark a borrower’s performance against industry averages, benchmarking data sources may use slightly different formulas.
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Managing vendor risk
Winter 2010
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 407
Abstract: Many banks outsource a variety of activities, but that doesn’t mean they can sign the contract and forget about it. Federal regulations require banks to develop and maintain a vendor management program designed to protect customer information. And while these requirements may seem daunting, especially for smaller community banks, a risk-based approach can minimize the burden. There are several steps a bank should take to ensure compliance; an important part of the process is a formal risk assessment.