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Credit Card Charge-Offs Reach Highest Rate Since 2009

PYMNTS

Moody’s Investors Service reported Thursday (June 8) that credit card charge-offs — debts that are so delinquent that lending institutions have basically given up on collecting them — are at their highest rate since 2009 , possibly due to loosening lending standards. Capital One wasn’t far behind at 5.31 percent in 2016.

Cards 107
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Forbearance lending as a crisis management tool

BankUnderground

On balance, the literature is critical of loan forbearance in the corporate sector because of its potential to contribute to zombification a situation where bank lending keeps unproductive firms alive, resulting in lower aggregate total factor productivity. The Act boosted the aggregate capital stock by 1.4% on average over 201018.

Lending 52
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Lending Club Appoints BlackRock Veteran As Chief Capital Officer

PYMNTS

Lending Club, which has been struggling to recover from loan errors and the departure of its Chief Executive (among other issues), has named Patrick Dunne, a veteran of BlackRock, as its new chief capital officer. Dunne is well known in financial circles and his appointment is seen as a boon to the beleaguered Lending Club.

Lending 100
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The pro-cyclicality of capital ratios and credit supply, a tale of two sizes

BankUnderground

This post investigates whether large and small banks in the UK and US differ in the cyclical patterns of capital positions and credit provision. The reforms aimed to ensure that banks have sufficient capital resources to absorb losses and reduce the cyclical effects of bank capital (and regulation) on the supply of bank credit in stress.

Capital 105
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Taking A Credit-First Approach To Alt Lending 

PYMNTS

However, Tavares said the landscape is shifting, as LendingPoint and other alternative credit products lend their ears — and their money — to underserved populations. Burnside got his start in small business lending. It’s a very real situation in the U.S., which is where Dominican-born LendingPoint CSO Juan Tavares now calls home.

Lending 143
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Sub-Prime Lending’s Late-Year Bounce

PYMNTS

In some areas, the growth in sub-prime lending matches overall growth in the segment, with credit cards and personal loans as the best example. The sub-prime mortgage segment has also performed strongly in terms of delinquencies, in line with overall trends in the mortgage world since 2009. percent to 18.63 It never happened.

Lending 188
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Get your ducks in a row: HVCRE risk management

Abrigo

In a recent Sageworks webinar Robert Ashbaugh, senior risk management consultant at Sageworks, discusses High Volatility Commercial Real Estate (HVCRE) lending best practices. Ashbaugh goes on to demonstrate that the default rates for these loans did not peak until about 2009, and the ALLL did not increase until 2010.