Bank Credit Risk and Capital Allocation

    I created this outline of commercial loan risk in 1999, when I was head of capital allocations at KeyCorp.  I think there are still some important novel insights mentioned, and since it was never published, I figure I can help posterity by keeping it on the website .  Each portion has hyperlinks to supporting tables and graphs, many of which can be accessed directly here. 

I am now fortunate enough to be in a position where my musings are a bit more pointed in their application to making money, and therefore won't be adding to this, though errors are occasionally rectified.    

1. Introduction
2. Empirical Review of Banking Risk Factors

	charge-offs over time
	charge-offs over credit grade
	correlations
	credit spreads
	recovery rates
	annualized loss rates
	bank vs. public debt
	transition matrices

3. Calculating Bank Capital
   1. Exponential Capital and Uncertainty
   2. Prioritize Risk Bucketing

Fun statistical facts and financial equations

	Proof that discounted EVA = NPV
	Porter's 5 forces
	Risk Manager's Exam