Banking & Finance

What is credit risk?

Credit risk is the possibility of financial loss of a creditor (lender, lessor) arising from the failure of a debtor (e.g., borrower, lessee) to meet its financial obligation to pa...


What is credit risk and credit risk management (CRM)?

Credit risk is the possibility of financial loss of a creditor (lender, lessor) arising from the failure of a debtor (e.g., borrower, lessee) to meet its financial obligation to pa...


What is credit analysis?

Credit analysis is any process used for assessing the credit quality of a party through the analytical study of financial statements and other data, including payment history, repu...


What is CRE pre-completion financing?

An acquisition, development and construction loan is financing for the development of commercial real estate that is made available during a project’s construction phase, it allowi...


What is CRE post-development financing?

Long-term real estate financing commonly with a maturity of 30 years and longer is permanent financing, used to refinance construction or bridge loans on properties that have reach...


What is cost?

The amount of cash or other asset paid or to be paid for the acquisition of a good, service or other future economic benefit or the incurring of a loss is a cost.  Costs that are c...


What is contractual subordination?

Contractual subordination is an arrangement where senior and junior loans are made to the same borrower (common debtor) but the senior creditor and junior creditor agree by contrac...


What is consolidation?

Consolidation the presentation of a parent company and its subsidiaries (affiliates) as one entity in the financial statements of the parent essentially as if the company group wer...


What is conservatism?

Conservatism is an accounting convention requiring that when different valuation methods are available, the alternative having the least favorable immediate financial impact must b...


What is commercial real estate lending?

Commercial real estate lending is provided to finance income-producing property that is to be built, refinance and restructure existing real estate financing, and acquire distresse...


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