All posts by Guest Contributor
By: Tom Hannagan I was hoping someone would ask about this. Return on Equity (ROE) is generally net income divided by equity, while Return...
It is the time of year during which budgets are either in the works or have been completed. Typically, when preparing budgets, we project...
By: Tom Hannagan In several posts we’ve discussed financial risk management, the role of risk-based capital, measuring profitability based on risk characteristics and the...
The pendulum has definitely swung back in favor of the credit discipline within financial institutions. The free wheeling credit standards of the past have...
By: Tom Hannagan In previous posts, we’ve dealt with the role of risk-based capital, measuring performance based on risk characteristics and the need for...
Just as with diet recommendations, moderation needs to be the new motto for credit risk management. Diets provide for the occasional bag of chips...
By: Tom Hannagan The problem in the 2005 to 2007 home lending frenzy was not just granting credit to anyone who applied. It was...
Whenever an industry encounters problems, the natural tendency is to play the blame game. In the banking industry, credit risk managers are looking for...
By: Tom Hannagan In my last post, I addressed the need for banks to advance their management of risk to include the relationship between capital...
By: Tom Hannagan Much of the blame for the credit disaster of 2007 and 2008 has been laid at the risk management desks of...
We know that financial institutions are tightening their credit standards for lending. But we don’t necessarily know exactly how financial institutions are addressing portfolio risk...