Profitable Commercial Loan Pricing Just Became More Competitive with Entry of Credit Unions into Commercial Lending Market
Commercial Loan Pricing
Since the 2008 global downturn and resulting financial crisis, the ability to competitively price commercial loans has been difficult for most bankers. Systemic risk regulations, increased capital requirements for banks and the enhanced regulation...
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Why Are Bank Regulators looking at loan profitability?
Why Are Bank Regulators looking at loan profitability and the capacity to repay
The Federal Deposit Insurance Corporation and the FDIC said in their 2014 bank-lending summary “In many cases, examiners question the borrower capacity to repay newly underwritten loans if economic conditions deteriorated or if interest rates rose to historical norms.” This is quite strong language, and there is m...
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Commercial Loan Pricing Trends to Keep an Eye On
Commercial Loan Pricing Trends to Keep an Eye On
Commercial Loan Pricing
Commercial loans have long been the largest asset earners for banking institutions, but since the economic crisis of 2008 the number of non-traditional commercial loan lenders has skyrocketed. Commercial loan pricing in recent times has gone from price-setting to price-taking with the increased amount of competition...
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