-PDF Download- Community Bank Strategic Lending Choices And Performance EBOOK

Community Bank Strategic Lending Choices and Performance

Author: Gary Whalen

Publisher:

Published: 2007

Total Pages: 66

ISBN-13:

"Most community banks have been unable to increase dramatically the percentage of their revenue coming from non-traditional sources and so remain reliant on the net income generated by traditional intermediation activities. This continued dependence means that the lending strategy chosen by any community bank is a key determinant of its survival. In this study the lending strategies chosen by a sample of 5508 community banks are examined over the 1995 - 2004 period. Links among the chosen strategies, strategic change, and performance are also investigated using both univariate and regression analysis. The analysis of lending strategy trends reveals an increase in the percentage of community banks that emphasize lending to business borrowers and a decrease in the fraction of institutions specializing in loans to non-commercial customers. The data also indicate that the typical community bank changed its lending strategy over the decade, and many did so more than once. Differences in performance are evident across the strategic groups. The results indicate that business real estate lenders earned the highest returns over the decade, but also were the riskiest. When returns are adjusted for risk, a number of lending strategies produced performance exceeding that of business real estate lending, including residential real estate lending, diversified lending, and agricultural lending. The results show that strategic change reduces returns and increases risk, all else equal. The evidence indicates a large performance disadvantage for the smallest community banks regardless of the lending strategy they pursue"--Office of the Comptroller of the Currency web site.

Community Bank Strategic Lending Choices and Performance

Author: Gary Whalen

Publisher: CreateSpace

Published: 2014-12-31

Total Pages: 58

ISBN-13: 9781505309713

DOWNLOAD EBOOK →

Most community banks have been unable to increase dramatically the percentage of their revenue coming from non-traditional sources and so remain reliant on the net income generated by traditional intermediation activities. This continued dependence means that the lending strategy chosen by any community bank is a key determinant of its survival. In this study the lending strategies chosen by a sample of 5508 community banks are examined over the 1995 - 2004 period. Links among the chosen strategies, strategic change, and performance are also investigated using both univariate and regression analysis. The analysis of lending strategy trends reveals an increase in the percentage of community banks that emphasize lending to business borrowers and a decrease in the fraction of institutions specializing in loans to non-commercial customers. The data also indicate that the typical community bank changed its lending strategy over the decade, and many did so more than once.

Community Banks

Author: Christopher B. Joseph

Publisher: Nova Science Publishers

Published: 2013

Total Pages: 0

ISBN-13: 9781626189065

DOWNLOAD EBOOK →

This book provides an overview of an FDIC Community Banking Study which identifies and explores the issues and questions relating to community banks. To study community banks, it is necessary to define them. In the past, most analysts have used a maximum asset size, often $1 billion. However, using only a size cut-off does not account for industry growth, and the attributes associated with community banks are not exclusively tied to size. The value of community banks has always been associated with the unique combination of services they provide to their customers, as well as the manner in which they do business. Community banks tend to be relationship lenders, characterised by local ownership, local control, and local decision making. By carrying out the traditional banking functions of lending and deposit gathering on a local scale, community banks foster economic growth and help to ensure that the financial resources of the local community are put to work on its behalf. Community banks have always been inextricably connected to entrepreneurship. As of 2011, they held 14 percent of banking industry assets, but 46 percent of the industry's small loans to farms and businesses.

Community Banks

Author: Christopher B. Joseph

Publisher:

Published: 2013

Total Pages: 222

ISBN-13: 9781626189072

DOWNLOAD EBOOK →

This book provides an overview of an FDIC Community Banking Study which identifies and explores the issues and questions relating to community banks. To study community banks, it is necessary to define them. In the past, most analysts have used a maximum asset size, often $1 billion. However, using only a size cutoff does not account for industry growth, and the attributes associated with community banks are not exclusively tied to size. The value of community banks has always been associated with the unique combination of services they provide to their customers, as well as the manner in which they do business. Community banks tend to be relationship lenders, characterized by local ownership, local control, and local decision making. By carrying out the traditional banking functions of lending and deposit gathering on a local scale, community banks foster economic growth and help to ensure that the financial resources of the local community are put to work on its behalf. Community banks have always been inextricably connected to entrepreneurship. As of 2011, they held 14 percent of banking industry assets, but 46 percent of the industry's small loans to farms and businesses.

A Financial Management System for Community Banks: Strategic planning

Author:

Publisher:

Published: 1989

Total Pages: 52

ISBN-13:

DOWNLOAD EBOOK →

Strategic Planning Guide for Community Banks & Thrifts

Author: Douglas V. Austin

Publisher: Irwin Professional Publishing

Published: 1998

Total Pages: 0

ISBN-13: 9780786311835

DOWNLOAD EBOOK →

Whether you are trying to survive and flourish as an independent bank, or simply looking for ways to strengthen your bank's performance, Strategic Planning Guide for Community Banks and Thrifts was written for you. This insightful book shows executives of commercial banks, thrift institutions, and holding companies how to develop a plan that is aggressive yet flexible, ready to accommodate unexpected external factors as well as regulatory changes. Before developing your strategic plan, however, you must first conduct a thorough situation analysis. Strategic Planning Guide for Community Banks and Thrifts walks you through the SWOT analysis Strengths, Weaknesses, Opportunities, and Threats - detailing what the board of directors and trustees should reasonably expect from each member of management and key staff. More than any other component, a thorough SWOT analysis is the key to an honest and objective plan - and the blueprint to guarantee that your bank's strategic plan starts on solid footing!

Community Reinvestment Performance

Author: Kenneth H. Thomas

Publisher: Irwin Professional Publishing

Published: 1993-01

Total Pages: 515

ISBN-13: 9781557383792

DOWNLOAD EBOOK →

The equality and breadth of bank lending practices are under microscopic scrutiny from community groups, Congress, financial regulatory agencies and the media. To say that subjective interpretation and sporadic enforcement have made the Community Reinvestment Act one of the most controversial regulations ever imposed upon banking is an understatement. As front page headlines charge discriminatory lending practices, as CRA is linked to urban blight and the L.A. riots, and as previously confidential bank CRA ratings are disclosed, banking's least liked law becomes ever more controversial, emotionally charged and unpopular. Enforcement of CRA is high on the Clinton agenda in a shift from previous administrations. New justice department investigations, lawsuits and penalties, powerful and well-organized community groups, and heightened attention from the public and media all promise to make CRA the most talked about regulatory issue of the 1990s. Furthermore, it will increasingly become a major component in the approval of impending bank mergers and any proposed new powers for the banking industry. Yet, if the truth be known, CRA ratings are alarmingly subjective. While repeatedly alleged, these charges have never been documented - until now. In this seminal work, bringing together years of analysis and research, CRA expert Kenneth H. Thomas presents the first truly objective, in-depth evaluation of CRA assessment and performance. Dr. Thomas reveals actual cases of CRA grade inflation and deflation - including the previously unreported case of apparent regulatory favoritism involving the controversial acquisition of one of America's largest failed banks. Sure to spark additional debate, this landmark work is required reading for anyone in the CRA triangle - bankers, community groups and bank regulators. Community Reinvestment Performance sheds new light on banking's least liked law; uncovers what bankers, community groups and regulators really think about CRA; provides the first historical analysis of CRA performance from 1982 - 1992; and includes innovative recommendations for improving CRA with an emphasis on public policy issues.