How to Increase Profitability of Commercial Loans at banks
Profitability of Commercial Loans at banks
According to The World Bank, efficiency and speed directly relate to bottom-line profitability of commercial loans at banks. Without a robust data collection tool, an efficient automated credit scoring system as well as competitive lending rates, lenders can and will notice a signifi...
Read More
How will the profitability of commercial loans at banks be affected in the years to come?
How will the profitability of commercial loans at banks be affected in the years to come?
The commercial loan market went through a lot in recent years. That it hit the bottom during the 2008 global economic recession and improved considerably over the past few years is a clear illustration of this very fact. However, there is a lot of uncertainty about what lies ahead for the players of this i...
Read More
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...
Read More
Are banks softening their commercial loan pricing standards?
Are banks softening their commercial loan pricing standards?
Commercial Loan Pricing update
Over the past few years, financial regulators have tightened their monitoring of banks to ensure that the mistakes that led to the 2007 financial crisis are never made again. For instance, they required large banks to separate their investment branch from their retail one to prevent excessive risk...
Read More
What Is A Risk Rating?
What Is A Risk Rating?
More and more loans are being granted every day. Before approving the next loan, ask yourself: is the risk worth the ROI? Where is the line between reaching portfolio goals and knowing when to walk away?
Studies have been conducted to educate and encourage financial institutions to implement loan pricing models. These models are designed to incorporate the analytics req...
Read More