Professional Documents
Culture Documents
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Quick Quiz
Why is lending so closely regulated by state and federal authorities? What is the CAMELS rating, and how is it used? List several elements of a good written loan policy.
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Quick Quiz
What are the typical steps followed in receiving a loan request from a customer? What three major questions or issues must a lender consider in evaluating nearly all loan requests? Explain the following terms: character, capacity, cash, conditions, and control. What are the principal parts of a loan agreement? What is each part designed to do? What are some warning signs to management that a problem loan may be developing? McGraw-Hill/Irwin
Bank Management and Financial Services, 7/e
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Key Topics
Types of Loans Banks Make
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Regulations
McGraw-Hill/Irwin Bank Management and Financial Services, 7/e 2008 The McGraw-Hill Companies, Inc., All Rights Reserved.
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Asset Quality
Criticized Loans Scheduled Loans Adversely Classified Loans
Substandard Loans Doubtful Loans Loss Loans
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Newer Lending Paradigm or Back to the Basics? An Increased Coordination Among Financial Regulators in Different Countries McGraw-Hill/Irwin
Bank Management and Financial Services, 7/e
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Loan Review
Examination of Outstanding Loans to Make Sure Borrowers are Adhering to Their Credit Agreements and the Bank is Following Its Own Loan Policies
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Record of Borrower Payments Quality and Condition of Collateral Completeness of Loan Documentation Evaluation of Borrowers Financial Condition Assessment as to Whether Fits with Lenders Loan Policies
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Loan Workouts
The Process of Resolving a Troubled Loan So the Bank Can Recover Its Funds
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