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Corporate Bank Lending: Scenario Analysis as an Alternative to Traditional Metrics

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dc.contributor.author Sagner, James S. en_US
dc.contributor.author Kohn, David en_US
dc.date.accessioned 2014-07-16T16:13:41Z
dc.date.available 2014-07-16T16:13:41Z
dc.date.issued 2012 en_US
dc.identifier.citation Poster 13 en_US
dc.identifier.other 50ac9ff9-8f88-14b9-757e-ff0b499b3d98 en_US
dc.identifier.uri https://scholarworks.bridgeport.edu/xmlui/handle/123456789/378
dc.description For most financial institutions today, lending is a multistep process that often is separated from the credit review process. In an ideal situation, the credit proposal delineates the inherent risks to the transaction; however, the thrust of credit approval is more often the internal selling of the deal. As such, the credit proposal, if it does err, errs in overselling the strengths of the credit and in underestimating the risks in the transaction. In researching a new book on corporate lending, one of the authors examined some twenty loan agreements, selecting several for inclusion in the text. In every company or industry that was analyzed, the problems experienced could not have been discovered by traditional credit analysis. Instead, they resulted from several factors:performance not essentially at variance from that of its deteriorating industry negative conditions in the economy; fraud; and reduced demand due to the recession that began in 2008. The concept of scenario analysis in bank lending can only be effective if research is conducted to determine the causal factors that effect loan repayment. The authors suggest that non-performing loan experience should be studied over several years to develop regressions on selected independent variables. en_US
dc.subject Faculty research day en_US
dc.title Corporate Bank Lending: Scenario Analysis as an Alternative to Traditional Metrics en_US
dc.type Presentation en_US
dc.institute.department School of Business en_US
dc.institute.name University of Bridgeport en_US
dc.event.name Faculty Research Day en_US


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