Unlocking Valuable Strategic Lending Insights

Loans | ALCO | Interest Rates

Staying ahead of the competition means asking the right questions

The lending market these days can be likened to a popular fishing hole, with dozens and dozens of boats (i.e., banks and credit unions) all casting their lines into the same prime spots, resulting in intense competition (i.e., pricing pressures). Amid this highly charged environment, there are a number of common elements impacting lending strategy discussions, including:

• Deployment of excess liquidity

• Relative spreads versus absolute yields

• Capacity for duration

• The specter of recession (credit risk)

• Usefulness of derivative and option pricing

• Competition for lending talent