Hi Guys, Need some help with unfamiliar banking terms. I google them up but can’t seem to get a good handle on the terminology and its implication. If anyone can help give me a quick overview of the following terms, that would be super. I am looking at a California banks, if that helps. Disbursed Balance Special Mention Substandard How does this three key variables impact Non-accrual/Non-performing classification? thanks in advance.
No, but I did stay at a Holidy Inn Express last night. When in doubt, the FDIC is a good bank source. The PDF will answer all of your questions. http://www.fdic.gov/regulations/safety/manual/index.html
I can answer one of the three terms mentioned in your email: Disbursed balance: Used frequently in back office operations (e.g. loans) to signify the amount of money that has already been sent to a borrower under a credit agreement. For instance, if a $50M credit agreement is signed, and only $10M is drawn down in the first month, the disbursed balance is $10M. It effectively has the same meaning as outstanding balance. Unfortunately I can’t answer how it impacts non-accrual/non-performing, but if you add more details I can try to find out.