Morton Glantz has written a "soup-to-nuts" text on the commercial lending process within banks. The book is exceptional, offering both breadth and depth of coverage.

Glantz opens with the lending decision process. Real-world examples illustrate the ambiguities of assessing a small business's viability. The message he illustrates over and over is "know your client's business." A chapter focuses on unsecured lending to seasonal businesses. Another looks at secured lending. Other chapters discuss:

ratio analysis,

cash flow analysis,

financial forecasting,

Next, the book turns to credit-specific risk management. A chapter discusses the risks of too rapid growth and how to identify what is a credit's sustainable rate of growth. Another looks at financial distress. It considers qualitative and quantitative indicators of trouble, including regression models. It then turns to workout and legal issues.

The book considers credit administration, with chapters covering

establishment of a risk management area, and

capital adequacy.

These closely parallel recommendations of the Basle Committee and US bank regulators.

Three chapters address portfolio credit risk measurement and management including a detailed descriptions of the Moody's/KMV EDF Credit Measure model.