商业银行管理Chap016.pptVIP

* * * * Chapter Sixteen Lending Policies and Procedures: Managing Credit Risk Key Topics Types of Loans Banks and Competing Lenders Make Factors Affecting the Mix of Loans Made Regulation of Lending Creating a Written Loan Policy Steps in the Lending Process Loan Review and Loan Workouts Introduction However, risky or not, the principal reason many financial firms are issued charters of incorporation by state and national governments is to make loans Lenders are expected to supply credit for all legitimate business and consumer financial needs and to price that credit reasonably Loans support the growth of new businesses and jobs within the lender’s market area Loans frequently convey information to the marketplace about a borrower’s credit quality The lending process bears careful monitoring at all times Types of Loans Real Estate Loans Financial Institution Loans Agriculture Loans Commercial and Industrial Loans Loans to Individuals Miscellaneous Loans Lease Financing Receivables The largest category in dollar volume is real estate loans, followed by loans to individuals, and commercial and industrial (CI) loans TABLE 16–1 Loans Outstanding for All FDIC-Insured Banks as of December 31, 2010 (consolidated domestic and foreign offices) Types of Loans (continued) Factors Determining the Growth and Mix of Loans Characteristics of the market area Lender size Wholesale lenders vs. retail credit Experience and expertise of management Loan policy Expected yield of each type of loan Regulation General rule: A lending institution should make the types of loans for which it is the most efficient producer Regulation of Lending The mix, quality, and yield of the loan portfolio are heavily influenced by regulation Examples of lending regulations: The total volume of real estate loans granted by a U.S. national bank cannot exceed that bank’s capital and surplus or 70 percent of its total time and savings deposits, whichever is greater An unsecured loan to a single custo