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#1120339 - 01/30/09 06:45 PM interest accrual method
DebL Offline
Gold Star
Joined: Jan 2007
Posts: 314
CA
Would any of you be willing to share the method you use to accrue interest on commercial loans & the size of your institution?

I thought that 365/360 was fairly common for commercial loans, but have heard some rumblings about how only "big banks use this to screw the little guy". (Direct customer quote.)

Just trying to figure out if we're totally out in left field on this...

Thanks!
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Lending Compliance
#1120797 - 01/31/09 10:16 PM Re: interest accrual method DebL
Ray_ Offline
Platinum Poster
Joined: Aug 2006
Posts: 879
Dallas, TX
We use the Actual/360 method on commercial loans and we are by no means a "big" bank.

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#1120806 - 02/01/09 02:41 PM Re: interest accrual method Ray_
HRH Okie Banker Offline
Power Poster
Joined: Jan 2003
Posts: 3,070
Oklahoma
Originally Posted By: Ray_
We use the Actual/360 method on commercial loans and we are by no means a "big" bank.


Same here.
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#1121187 - 02/02/09 06:35 PM Re: interest accrual method HRH Okie Banker
Sage Offline
Platinum Poster
Joined: Aug 2005
Posts: 914
We use 365/365 on commercial loans unless they are tied to LIBOR and then we use actual/360.

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