WSJ headlines and questions for March 14 2011

WSJ headlines and questions for March 14 2011 - WSJ...

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WSJ headlines and questions March 14, 2011. WSJ Headline March 7. Banks Get Back to the People Business Character is making a comeback at your local bank. Some financial institutions are digging much deeper into a business owner’s character than the value of collateral, business plan, or credit score to make small business loans since the recent recession. Bank lending technologies are usually classified into two categories: Hard-information lending, which is based on quantifiable, verifiable data that is easy to communicate by the loan officer, like the value of collateral, the firm’s financial ratios, and credit scores. Soft-information lending, which is based on data which is difficult to quantify and communicate by the loan officer and is difficult to verify by bank management, such as the character of the borrower learned by contact over the course of a relationship with the loan officer (relationship lending) or the judgment of the loan officer based on personal experience and training (judgment lending).
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WSJ headlines and questions for March 14 2011 - WSJ...

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