In-Depth Looks at Some Key Issues
My web site offers plenty of articles and short papers on a wide range of topics, including:
- My Archive of more than 200 past issues of my free monthly e-zine, Jeff's Thoughts
- Articles dealing with issues facing the banking industry.
- My "Insights" series of short articles focused on Member Business Lending;
- And other articles touching on topics like getting the most out of conferences or training activities.
In working with business borrowers, you have learned how creating – and following – a good business plan can contribute to that business's success. And your experience has also taught you that many businesses have the wrong plan, or a weak plan, or no plan at all. Others started out with a good plan, but drifted away from it over time, to their detriment.
Your credit policy is nothing less than your business plan for your credit operations!
How's it working?
Download my 30-page white paper, "Is Your Credit Policy Working for You?" for an understanding of:
- How your policy can hurt your credit business.
- What goes wrong, how policy goes astray.
- What it takes to get it right: knowing roles, preparing the ground, getting the right inputs, planning effective outputs.
- Next steps to developing a credit policy that works.
If you used to think of "Culture" as a fuzzy idea that didn't impact your bank's success, the recession probably changed your mind! But as conditions have improved, it has become easier and easier to forget that having the right culture isn't a luxury or a "nice to have" …
… it's a key source of competitive advantage in your marketplace!
What's the right culture? I believe a "tight" culture – one in which all levels and functions have the same understanding of goals, standards, strategies, practices, values – allows an institution to respond to changing conditions, to ward off threats and seize opportunities, more quickly than does a "loose" culture where different players are out of alignment with one another.
Explore the attributes and advantages of the desired tight culture by downloading my 23-page white paper, "Build Your Culture, Build Your Business". Learn more about how tightening your culture can make you more nimble, more resilient, and more successful. Topics include:
- Why culture truly does matter to your business success.
- What I mean by culture, and why a "tight" culture is what you need most.
- Why you may not realize your culture is causing problems, and how to detect the symptoms of a "loose" culture.
- How to assess and improve your culture.
Managing loss reserves and capital is a major challenge for any credit institution. We have plenty of experience, in recent years, to show us what happens when too little is put aside to cover losses. But is it possible to be too cautious? What harm does over-reserving do?
There is a "sweet spot" between over-reserving and under-reserving, and to hit that sweet spot, you need the best possible portfolio assessment tools. The most effective credit portfolio assessment not only paints a portrait of where your pools of risk lie at any given moment in time, they offer reliable predictive power.
For more about this line of reasoning, start with my 14-page white paper, "Finding the ALLL/Capital “Sweet Spot” for Your Bank", which explains how a more reliable approach to credit portfolio assessment offers better balance between protection and growth. You'll learn more about:
- Why ALLL so often fails as the first line of defense.
- How finding the sweet spot can benefit your institution.
- Features of a highly recommended assessment approach, Terminal Risk Analysis.
For a more technical description of how the recommended tool, Terminal Risk Analysis, delivers powerful assessment and predictive power, along with stress testing features, download 19 pages of in-depth explanation of the model behind Terminal Risk Analysis.