Profitability of Commercial Loans at Banks in Today’s Competitive Environment
Profitability of Commercial Loans at banks
As alternative lenders and online competitors proliferate, traditional banks with high overhead could see their customer base erode. With high origination expenses, processing and infrastructure requirements, Profitability of Commercial Loans at banks becomes problematic ...
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Saving the Bank With a Commercial Loan Pricing Model
Saving the Bank With a Commercial Loan Pricing Model
Commercial Loan Pricing
According to a report released by the Office of the Comptroller of the Currency, commercial banks have recently increased credit risk standards in approximately 30 percent of commercial loan products. This means that many banks will accept riskier ventures for financing and will relax some underwriting guidelines i...
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PULPS Loan Pricing Model Software
PULPS Loan Pricing Model Software
Try It With A Free Trial
Good news for financial institutions in the industry of providing commercial loans, The Hurdle Group is offering our advanced PULPS loan pricing model tool for a free trial. PULPS is a proven software meant to take the guess-work out of commercial loan pricing, resulting in greater profitability for banks and credit unions. Chairman...
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Profitability of Commercial Loans at Banks May Increase as Demand for Commercial Loans Grows According to Latest Beige Book Report
Profitability of Commercial Loans at Banks May Increase as Demand for Commercial Loans Grows According to Latest Beige Book Report
Profitability of Commercial Loans at banks
Last week, the Federal Reserve released its latest Beige Book report, which summarizes opinions and anecdotal evidence on the economic activity in the Federal Reserve's 12 Districts. According to some of the commentary i...
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Commercial Loans at banks: How profitable are they?
Commercial Loans at banks: How profitable are they?
Profitability of Commercial Loans at banks
According to the Wall Street Journal, US banks are lending to business again. Loans to commercial and industrial firms rose by 8.5% in the first quarter of 2015. The rate of lending to business is overtaking the rate of residential mortgages for the first time since the 1980s.
According to consu...
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Ways to Improve the Profitability of Commercial Loans at Banks
Ways to Improve the Profitability of Commercial Loans at Banks
Profitability of Commercial Loans at banks
The time is right to consider ways to improve the profitability of commercial loans at banks. According to a recent article in the Wall Street Journal, after suffering through a recession and a period of slow growth, companies have kept their balance sheets in good order and are prepari...
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Top Three Myths That Prevent Lenders From Adopting a Sound Commercial Loan Pricing Model
Top Three Myths That Prevent Lenders From Adopting a Sound Commercial Loan Pricing Model
Commercial loan pricing models
Are you allowing false beliefs and misconceptions to prevent you from recovering your costs and increasing your profit margins on your loans by adopting a commercial loan pricing model?
A reliable and consistent loan pricing model, like the PULPS Loan Pricing Model, help...
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Commercial Loan Pricing Variables
Commercial Loan Pricing Variables
Commercial Loan Pricing
Commercial loan pricing is done for the smallest to the largest commercial loans. Every loan has a rate, duration, fees and other terms that define the price for that loan. Lots of variables to consider. Pricing should be based on a defined and defensible methodology. It also can be influenced by individual discussions between the r...
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Proper Commercial Loan Pricing Is Key To Lending Success
Proper Commercial Loan Pricing Is Key To Lending Success
Commercial Loan Pricing
A lending institution's lifeblood is its commercial loan business. Although consumer loans generate a hefty sum of business, commercial loans easily outdistance them in revenue and return on investment. So with that being the case it is important to have a commercial loan pricing scheme that will bring in busine...
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The Pitfalls of Commercial Loan Pricing: What Bankers Need To Know, And Avoid
The Pitfalls of Commercial Loan Pricing: What Bankers Need To Know, And Avoid
Commercial Loan Pricing
Believe it or not, there are a lot of pitfalls in commercial loan pricing, and in this blog, we're going to discuss them, and how you can avoid them.
Many banks today use a spread-based pricing model instead of a risk-adjusted return on capital (RAROC) model. Approximately 15% of banks wh...
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