Strategies for the Loan Portfolio Across the Business Cycle

I. Foundational Commandments of Commercial Credit

A. Five Cs of Good Loans

1. Character

2. Capacity

3. Conditions

4. Capital

5. Collateral

B. Five Cs of Bad Loans

1. Complacency

2. Carelessness

3. Communication

4. Contingencies

5. Competition

II. More Than the Basics Need to be Evaluated

A. Four stages of the business cycle

B. Features of boom climate

C. Economic recovery

D. Credit culture

E. Bank changes beginning in the 1950’s

F. New bank services

G. New risks

III. Strategies for Lending

A. Exit strategies

B. Centralization and Standardization

C. Centralizing and Standardizing Lending Functions

IV. A Few Words About Training

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