Recommended Changes In Our Lending Practices - 1149 Words

With regards to matters of foreclosures, the situations that arise are often the result of families and/or individuals being impacted by various economic situations whether through job loss, illness, property de-valuation or fiscal irresponsibility, the problem is a complex one to solve. The nature of this essay is to take into consideration as many variables as possible and present options which may provide sensible value in which to aide those who befall under less fortunate circumstances as well as those circumstances that are more favorable. Preventative Measures: Financial Awareness Training The present climate surrounding financial education remains a nebulous subject. Often times the best and most recommended financial†¦show more content†¦One method in which to provide this is by allowing for clients to perform interest only payments at half the interest rate of their original loan amount. This will in turn allow the lenders to continue to receive revenue and allow for property owners to retain their property until which time the individual is able to rebound from their economic plight. If the economic condition were such where other loans such as home equity lines of credit outside of the traditional loan agreement existed, these secondary loan amounts could be placed in a suspended state until which time the financial situation improves for the individual. In order to address the financial risk impended on lenders the clients could agree upon improvement of their economic situation to allow a 1% interest rate increase on all secondary loan amounts as a form of reconciliation. Bonuses: Incentives for the Fiscally Responsible Often times we spend a considerable amount of time concerning the situations where support is offered only when situations are bad. This can often create resentment for those who we would deem financially stable and responsible. In order to ensure a measure of impartiality I would propose that financial institutions offer incentives or rewards to those who have continuouslyShow MoreRelatedChapter 1. Introduction. A Strong Banking Sector Is Very1200 Words   |  5 PagesCHAPTER 1 INTRODUCTION A strong banking sector is very important for developing economy. One of the most important functions of banking is lending money. It is generally encouraged because it has the effect of funds being transferred to productive use, it helps in growing economy. As there are pros and cons of everything, the same is in lending money that carries credit risk, which arises from the failure of borrower to fulfill its contractual obligation. The failure of the banking sector has anRead MoreDream Beauty998 Words   |  4 Pagesreceived a total of 3,600 orders. Retail orders amounted to 1,000; convenience stores to 2,500; and mass merchants had 100 orders. Each order has a corresponding delivery that is usually completed within the 3-day fulfillment cycle. The company’s practice has been to allocate logistics-related costs to its three channels based on their relative percentage of sales volume. The orders were shipped in 2,000 packages, with retail accounting for 800 packages, convenie nce stores for 1,100 packages and massRead MoreFinancial Data For East West Bank2899 Words   |  12 Pagesobtained from the December 31, 2013 Uniform Bank Performance Report (â€Å"UBPR†) and various EWB documents ; as well as from interviews conducted with EWB management . The Board of Directors’ Loan Policy Statements, presented in this Lending Policy Manual, set forth the lending philosophy of the Bank. They provide broad guidance to management in balancing loan quality and origination objectives to achieve the earnings objectives of the Bank. Every institution needs to accept some risk in order to earnRead MoreBusiness Industry : An Alternative Source For Finance Funding3223 Words   |  13 Pagesthe laws, ordinary investors, such as friends, family, peers, and strangers are restricted to invest. Today, with a stagnant economy, many startups and businesses are struggling more than ever just to survive. With the passing of the Jumpstart Our Business (JOBS) Act of April 2012 and advanced technology, crowdfunding has taken a whole new level in helping startups and small businesses. Instead of using the traditional banking industry, crowdfunding offer an alternative source for finance fundingRead MoreMoral Hazard And The Banking System2418 Words   |  10 Pagestime period has been dubbed the Great Recession. Now at a broad level this recession was caused essentially by our large banks buying and positively rating thousands upon thousands of mortgage backed securities and collateralized debt obligations. In addition, the banks started getting to a point where they were leveraged sometimes in excess of 30 to 1. The Federal Reserve initially recommended banks try to stay around 10 to 1.(d) When the mortgages started to foreclose the value of those securitiesRead MorePriority Sector Lending28386 Words   |  114 PagesReview of Priority Sector Lending, prepared by the Internal Working Group set up in Reserve Bank under the chairmanship of Shri C. S. Murthy, Chief General Manager-in-Charge, Rural Planning and Credit Department, was placed on the RBI website on September 30, 2005 for public opinion. Subsequently, on November 8, 2005 one subparagraph has been added under paragraph 6.10 of the Technical Paper. DRAFT TECHNICAL PAPER BY THE INTERNAL WORKING GROUP ON PRIORITY SECTOR LENDING This Draft TechnicalRead MoreA Comparative Study of Lending Performance of the Commercial Banks36288 Words   |  146 PagesA comparative study of lending performance of the commercial banks Submitted by: NIRANJAN PARAJULI Balkumari College TU Registration no: 7-1-241-244-98 Roll No: 48/063 Submitted to: Office of the Dean Faculty of Management Tribhuvan University In the partial fulfillment of the requirements for the degree of Master s in Business Studies (MBS) Narayangarh, Chitwan January, 2009 Recommendation This is to certify that the thesis SubmittedRead MoreSyllabi2769 Words   |  12 Pagesto UCSD Extension’s Financial Decision Making course. My basic approach to the subject matter is that theory which cannot be practiced is not good theory, BUT practice that is not based on theory [i.e., a logical, independently verifiable analytic framework] is not good practice. Thus we will strive for a balance of both theory and practice to provide a rigorous, comprehensive course. Please review the following syllabus and let me know if you have any questions or comments. I will do everythingRead MoreSubprime Mortgage Crisis - a Case Study on Morgan Stanley4048 Words   |  17 Pagesin fact the new inventions in the US housing market – the subprime mortgage lending and securitization technology that significantly magnified the impact of the default risk of these loans on the whole financial system. This report, hence, aims to provide an understanding of how the subprime mortgage lending and securitization played a part in bringing about the Subprime Mortgage Crisis in 2007. A case study would follow our discussion to provide a further look into one of the financial institutionsRead MoreCredit Appraisal and Credit Risk Management13437 Words   |  54 PagesMANAGING CORE RISKS IN BANKING: CREDIT RISK MANAGEMENT Industry Best Practices BANGLADESH BANK CREDIT RISK MANAGEMENT Industry Best Practices PREPARED FOR: BANGLADESH BANK PREPARED BY: FOCUS GROUP ON CREDIT RISK MANAGEMENT Team Co-ordinator: Team Members: Sudhir Chandra Das Ali Reza Iftekhar Niaz Habib A.G. Sarwar Brian J. McGuire Naser Ezaz Bijoy Page 2 INTRODUCTION: Risk is inherent in all aspects of a commercial operation, however for Banks and financial institutions, credit risk