Banking
Showing 1–16 of 536 results
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COVID-19 checkup – 4 questions to ask a recovering business
February / March 2021
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 412
Abstract: Small and medium-sized businesses around the country have borne the brunt of the COVID-19 pandemic’s economic impact. As the downturn continues, they must find ways to right-size their operations. For some, this requires rethinking every aspect of the business. Lenders need to determine whether their borrowers are on track to adjust to the new operating environment — and thrive. This article suggests four questions to ask a borrower in this situation, such as whether the borrower’s future business model is realistic and whether the plan for implementing it makes sense.
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What can an AUP do for you?
February / March 2021
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 671
Abstract: Lending decisions can be complex and it’s important to be able to pull out what’s relevant from the pile. Sometimes a full audit isn’t required. Depending on the circumstances, a lender may request an “agreed-upon procedures” (AUP) engagement to provide a more targeted and narrow view of the borrower’s financial health. This article explains the parameters of an AUP and offers an example to illustrate how it might be a good option for a lender seeking specific information.
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Recognize cash flow problems before it’s too late
February / March 2021
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 721
Abstract: In light of the economic downturn caused by the COVID-19 pandemic, it’s more important than ever for lenders to focus their analyses of borrowers’ financial viability on cash. Sudden cash deficits can rapidly become chronic as businesses try to stay afloat in this uncertain economic environment. This article offers some places to look as lenders evaluate cash-poor borrowers — both within the statement of cash flows and beyond.
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Lending to a business with all-remote employees
February / March 2021
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 825
Abstract: Technology allows employees to work from anywhere in the world — and since the COVID-19 pandemic began, this phenomenon has been increasing at a rapid pace. While the arrangement can be beneficial for employees and employers, it also has some downsides. This article suggests that to determine whether a business with remote employees is creditworthy, a lender needs to understand the pros and cons of a virtual workforce and how it may affect the business’s profitability. A sidebar explains how to determine if a worker is an independent contractor or an employee.
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Bank Wire – Interim rule provides temporary relief from FDICIA requirements
Winter 2021
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 447
Abstract: This brief summary of recent events in community banking explains an interim rule from the FDIC that temporarily suspends specific requirements of the Federal Deposit Insurance Corporation Improvement Act of 1991 for banks that experienced significant asset growth in 2020. It also notes that banks need to prepare for the upcoming transition away from LIBOR, and points out that the Small Business Administration, with support from the Department of the Treasury (see below), recently released a simpler application designed to streamline the forgiveness process for some PPP loans.
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What does the pandemic mean for bank branches?
Winter 2021
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 514
Abstract: Many experts predict that much, or even most, of the prepandemic foot traffic at bank branches will remain online even after we return to “normal.” This means that the role of the branch will need to adapt to an increasingly digital model. This article explains that community banks need to focus on building or expanding their online presence while at the same time creating in-person customer experiences at their branches that can’t be duplicated elsewhere.
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Boost noninterest income for a healthier bottom line
Winter 2021
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 691
Abstract: In a difficult economy, community banks need to look beyond interest income and seek revenue streams that can help them maintain profitability. Bank managers need to evaluate potential noninterest income sources and determine which will be most likely to help shore up their bottom line going forward. This article offers some strategies to consider, including looking into overdraft and nonsufficient funds charges and revisiting waivers and collections.
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Lending in the age of COVID-19: Accounting for loan modifications
Winter 2021
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 876
Abstract: Loan modifications during the COVID-19 era create accounting challenges for banks, which must determine whether a particular modification constitutes a troubled debt restructuring (TDR). This article discusses the ins and outs of how a TDR is triggered and explains how the CARES Act provides temporary relief from the TDR accounting rules. It notes that, to enjoy that accounting relief, banks need to show that concessions were made as a result of the pandemic’s impact and not on account of financial difficulties caused by other factors.
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Real estate as a “side gig” – Learn the ins and outs of lending to a novice real estate investor
Year End 2020
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 419
Abstract: With real estate prices approaching all-time highs in some areas, novice investors continue to enter the market. Lenders need to determine what’s driving these persons or groups to purchase real estate and what they hope to achieve. This article offers some guidance to help lenders evaluate novice real estate investors. It notes that lenders should scrutinize novice investors’ intentions, experience and education to identify those with the potential to excel in this challenging field.
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A closer look at the percentage-of-completion method
Year End 2020
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 641
Abstract: Clearly, lenders need ways to determine whether their borrowers are maintaining profitability. One way is to learn about the accounting methods they use, including how subjective their assumptions are when reporting their financial statements. Businesses that engage in long-term contracts frequently use the percentage-of-completion method to record contracts and revenues. This article looks at the ins and outs of this method, including what kinds of businesses typically use it and how it works.
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Where there’s smoke, there’s fire – Watch for the warning signs of fraud
Year End 2020
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 696
Abstract: As a result of the dramatic economic downturn caused by the COVID-19 pandemic, many businesses have been struggling to maintain profit margins, and many of their employees are under severe stress. In this confusing and difficult environment, the temptation to commit fraud may be harder to resist. This article points out that it’s imperative that lenders be aware of the potential threat to their borrowers’ bottom lines — possibly from people inside the company — and take proactive action to ensure strong financial oversight and due diligence.
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Lending to retrofit a business in response to COVID-19
Year End 2020
Newsletter: Commercial Lending Report
Price: $225.00, Subscriber Price: $157.50
Word count: 888
Abstract: To mitigate the risks associated with COVID-19, many businesses are taking steps to modify their facilities, so lenders need to understand how to evaluate loan requests for retrofitting projects. This article suggests several questions to ask prospective borrowers, such as what’s driving the need for investment and whether customers will notice the improvements, which will help lenders make more-informed lending decisions. A sidebar addresses how to evaluate a borrower’s previous construction management experience.
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Bank Wire – FFIEC updates BSA/AML examination manual
Fall 2020
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 423
Abstract: This summary of recent developments in banking discusses several significant revisions to the FFIEC’s Bank Secrecy Act/ Anti-Money Laundering Examination Manual. It also notes that the OCC has proposed an update to its regulations that permits banks to hold in-person meetings, and that in June the OCC released its Spring 2020 Semiannual Risk Perspective, reporting key issues facing the federal banking system. In addition, the article points out that the FFIEC recently provided cloud computing guidance.
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Are off-site bank examinations here to stay?
Fall 2020
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 542
Abstract: During the COVID-19 pandemic, many banking regulators have shifted to an off-site, or remote, examination process. Many people believe that off-site examinations — with their obvious efficiencies and other benefits — will become standard operating procedure in the future. This article explains the Federal Reserve’s position on use of off-site examinations under unique circumstances and looks at some key factors in how examiners determine whether they’re appropriate, including a bank’s risk profile and management preferences.
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Hedge your bets – Balance risk vs. reward in asset concentrations
Fall 2020
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 661
Abstract: A community’s economy is often based on just one or two industries, with a smattering of others in the mix. But primarily lending to just one industry, whether it’s to farmers, manufacturers or any other group, can throw a community bank’s loans out of whack and make it tough to recover if that industry takes a hit. This article discusses how community banks can balance risk and reward as they provide lending services to local industries.
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Now’s the time to review your internal controls
Fall 2020
Newsletter: Community Banking Advisor
Price: $225.00, Subscriber Price: $157.50
Word count: 907
Abstract: The COVID-19 pandemic has had a dramatic impact on the way banks and other organizations do business. Some banks have closed branches — and many are operating with reduced staff or relying more heavily on remote workers. These conditions create internal control challenges. This article suggests that it’s a good idea for banks to review their internal control policies and procedures and consider strategies for making them more efficient and effective. A sidebar offers some cybersecurity tips for remote workers.