Camera-ready art of "Regional Outlook" (758Kb PDF file - PDF help or hard copy)
In Focus This Quarter
Subprime
Lending: A Time for Caution - The extent of subprime
lending is increasing as strong competition for high-quality borrowers
has some lenders moving down the credit quality spectrum. Subprime lending
requires a commitment of resources and expertise beyond that required in
more conservative lending, and the consequences of deficiencies in underwriting,
servicing, and collection can be severe. By Kathy R. Kalser, Debra
L. Novak
Retail
Shakeout: Causes and Implications for Lenders
- Despite favorable economic conditions, the retail industry is experiencing
slow revenue growth in a highly competitive environment. The confluence
of rapid change in store formats and slow revenue growth has led to an
ongoing shakeout among both large and small retail chains, and this shakeout
may adversely affect credit quality at some insured institutions. By
Richard A. Brown, Diane Ellis
Regular Features
Regional
Economy - Personal income and employment growth
in the San Francisco Region remain strong and continue to outpace the nation.
Analysts are predicting continued expansion in 1997, although enthusiasm
is somewhat tempered because the Region's strength is currently fueled
by industries with a history of boom and bust cycles. By Gary C.
Zimmerman
Financial
Markets - Securitization of home equity loans
is growing rapidly . . . consumer debt consolidation loans may be driving
this growth . . . signs of relaxed underwriting have appeared . . . the
arrival of FASITs could increase the appetite of community banks to enter
the ABS market. By Allen Puwalski
Regional
Banking - Healthy net interest margins, rising
levels of noninterest income, and the implementation of several regulatory
reporting changes boosted reported first-quarter profits at the Region's
depository institutions. As the pace of merger activity increases, a recent
SEC ruling tightening criteria pooling of interest method for mergers may
increase popularity of the purchase method. By Catherine I. Phillips-Olsen,
Roger Stephens, DiAnn Bielaczyc
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