Questions from Financial Markets

Q: What are the primary considerations used by FIs to evaluate mortgage loans

What are the primary considerations used by FIs to evaluate mortgage loans?

Q: What are the purposes of credit-scoring models? How do

What are the purposes of credit-scoring models? How do these models assist an FI manager to better administer credit?

Q: An FI has a $200 million asset portfolio that has an

An FI has a $200 million asset portfolio that has an average duration of 6.5 years. The average duration of its $160  million in liabilities is 4.5 years. Assets and liabilities are yielding 10 percen...

Q: How does an FI evaluate its credit risks with respect to consumer

How does an FI evaluate its credit risks with respect to consumer and small-business loans?

Q: In what ways does the credit analysis of a mid-market

In what ways does the credit analysis of a mid-market borrower differ from that of a small-business borrower?

Q: What are some of the special risks and considerations when lending to

What are some of the special risks and considerations when lending to small businesses rather than large businesses?

Q: Why must an account officer be well versed in the FI’s credit

Why must an account officer be well versed in the FI’s credit policy before talking to potential mid-market business borrowers?

Q: How does ratio analysis help answer questions about the production, management

How does ratio analysis help answer questions about the production, management, and marketing capabilities of a prospective borrower?

Q: Why should a credit officer be concerned if a mid-market

Why should a credit officer be concerned if a mid-market business borrower’s liquidity ratios differ from the industry norm?

Q: Define each of the following four measures of liquidity risk. Explain

Define each of the following four measures of liquidity risk. Explain how each measure would be implemented and utilized by a DI. a. Financing gap and financing requirement. b. Sources and uses of liq...