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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Commercial Loan Pricing Model Inputs
Commercial Loan Pricing Model Inputs
Commercial loan pricing model
Small business executives, financiers and even bank employees often have questions about loan pricing. How are commercial loan interest rates determined? Pricing at what the competiton is doing does not get you to the profitability goals of the organization. Why do they fluctuate so often? And why does one institution pr...
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CD and Money Market Interest Rate – Profitability at banks
CD and Money Market Interest Rate - profitability at banks
With the economy expanding, the probability for the Federal Reserve to raise short-term interest rates in the first half of 2015 rises. Upgraded credit quality will accompany a healthier economy. Higher interest rates in a favorable environment mean bank performance should improve. Commercial and real estate loan demand will especi...
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Commercial mortgage lending is expected to grow this year
Commercial mortgage lending is expected to grow this year
A report published by the Mortgage Bankers Association reveals that commercial mortgage lending is anticipated to increase this year. This is because commercial mortgage lenders are planning to distribute more funds to meet the growing demand for this category of financing. The association surveyed the major players of the commercial mortg...
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Social Banking and CRM System Useage in Banks
Social Banking and CRM System Useage in Banks
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The operating environment for banks is experiencing change. For example, each year 45% of customers stop at their local branch less than 5 times. In the 18-29 age group, 92% use social media. Surprisingly, the 65+ group is the fastest growing segment and 38% already partake in social media. Visits to social networking sites by financ...
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State of SBA loans: The demand for some commercial loans is declining
State of SBA loans: The demand for some commercial loans is declining
Last month, the American Banker Index of Banking Activity dropped to its lowest level since January 2014. The reading, which signals the state of banking activity, indicates that the banking sector is displaying signs of sluggishness. This article discusses the potential reasons for the notable decrease observed in the index of...
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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...
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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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