How Profitable Are Commercial Bank Loans?
Interest Rate and commercial loan demand forecast
Phill Rowley was once quoted in the newspaper as saying “Interest rates will go up, down or stay the same”. It was from an interview he had given and that is all the reporter wrote. He wanted to simplify it but the uncertainties in future interest rate moves have filled text books.
We all know in...
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Adjusting Commercial Loan Pricing ROA Targets Increases Profitability
Adjusting Commercial Loan Pricing ROA Targets Increases Profitability
Commercial Loan Pricing
Because cash, fixed assets, and the investment portfolio earn very little, it falls upon the loan portfolio of a bank to generate any sort of reasonable income. Consumer lending and mortgage lending typically have modest profitability. That leaves the lion's share of the job of generating real pro...
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Are You Using Your Loan Pricing Model Or Is It Using You?
Are You Using Your Loan Pricing Model Or Is It Using You?
Loan Pricing Model Inputs
Typically, for a commercial loan pricing model to work effectively, a concerted effort is involved. Since a one-size-fits-all approach is rarely truly useful, loan pricing software must be customized to specific goals and objectives of your bank. Assumptions must be set, Return on Assets (ROA) targets mus...
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Adjusting Commercial Loan Pricing ROA Targets Increases Profitability
Adjusting Commercial Loan Pricing ROA Targets Increases Profitability
Commercial Loan Pricing
Because cash, fixed assets, and the investment portfolio earn very little, it falls upon the loan portfolio of a bank to generate any sort of reasonable income. Consumer lending and mortgage lending typically have modest profitability. That leaves the lion's share of the job of generating real pro...
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Why Join a Banking Association? Top Benefits for Members
Why Join a Banking Association? Top Benefits for Members
Value of banking associations to the members
As most bank executives will agree, the banking industry is ever-changing in terms of compliance issues, consumer payment strategies, and technology advances. Add to that the need for continuing education in best practices for lending strategies and risk management, and the task of...
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Five types of Loan negotiating skills in banking – which do you have?
Five types of Loan negotiating skills in banking - which do you have?
Loan negotiating skills in banking; reviewing the basics:
We meet lots of bankers at various Banking Schools and through our work on Commercial Loan Pricing models. Our research tells us that there are different loan negotiating skills in banking and that there are five that are the most common. Looking at the...
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Understanding the Difference Between Loan Origination Skills Versus Credit Management Skills – What Should be the Balance?
Understanding the Difference Between Loan Origination Skills Versus Credit Management Skills – What Should be the Balance?
Loan origination skills versus credit management skills – what should be the balance?
A concept that is commonly misunderstood by those that are new to the lending and banking industries, is the difference between loan origination skills versus credit management sk...
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Why Your Survival and Profitability Depend on the Answer to One Question- Where Do Banks Make Money – Deposits, Loans or Both and How is That Measured
Why Your Survival and Profitability Depend on the Answer to One Question: Where Do Banks Make Money – Deposits, Loans or Both and How is That Measured?
Where do banks make money – deposits, loans or both and how is that measured?
The number and types of services and products offered by banks is constantly evolving. Gone are the simple days of banks only earning revenue based on the l...
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Understanding the Value of Graduate Banking Schools
Understanding the Value of Graduate Banking Schools
Value of Graduate Banking Schools
The financial landscape in the US is constantly growing and changing. As bankers and regulators, it is crucial that we learn to navigate the advancing technology, global issues, and challenging times. There is an increasing need for leadership in the industry. Graduate programs in banking assist us in u...
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US Bankers watching Canadian commercial loan delinquency trends
US Bankers watching Canadian commercial loan delinquency trends
Commercial loan delinquency trends
Commercial loan delinquency trends in the United States are finally moving in the right direction. According to the Chicago Business Daily, delinquency rates are slowly but steadily shrinking - a sure sign of recovery from the crash of 2008. "With rising incomes and property values, more ...
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