Many banks compete aggressively for business in consumer credit cards. What is the particular attraction of this type of lending?
Answer to relevant QuestionsSuppose that you are considering making a working capital loan to a business customer of your bank. You do the cash to cash cycle analysis and determine that the firm’s daily average cost of goods sold is $ 50,000. What ...Explain why historical charge off and past due data may not represent the bank’s current portfolio credit risk. Suppose that you generate a cash based income statement and determine that CFO equals 75 percent of cash dividends paid and payments on current maturities of long term debt. What is the significance of this in terms of the ...Of the five key questions mentioned at the beginning of the chapter, only the last four were discussed in detail. The first question—“ What is the character of the borrower and quality of information provided?”— can ...What is the purpose of a dealer reserve in indirect lending? When is a bank at risk with indirect loans?
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