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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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