| As commercial banks entered the 1990s, they left behind a most unusual paradox from the 1980s--a period of record peacetime economic expansion and an all-time high number of commercial bank failures. Studies into this phenomena indicated the primary characteristic of the failed banks was the poor management of the loan portfolio.;The primary purpose of this thesis is to identify and analyze the commercial loan credit risks U.S. banks are facing in the 1990s. Five external commercial loan credit risks are discussed. (External risks are risks beyond the control of an individual bank and its management.) These include the future performance of both the United States and world economies, commercial real estate, environmental issues, leveraged buyouts and bankruptcy. The five internal risks presented include the quality of a bank's internal loan administration, off-balance sheet items, compliance, lender liability and securitization. |
