Articles

Myths of Loan Pricing Model Implementation

Based on our work with community banks in implementing loan pricing models, we would like to share with you a number of common misconceptions that we frequently encounter. The first of these myths is…

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Pricing Small Business Loans – Offers and Counteroffers

Many banks have a pricing policy that provides only general guidelines for commercial loan pricing, such as three percent over the corresponding treasury, or 2.75 percent over LIBOR, potentially subject to a floor at some level, or maybe not.

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Balancing CRA Considerations with Branch Closure Strategies

Objective data lead the way. Community Bank executive teams and directors are increasingly preoccupied with quantifying the impact of regulatory oversight on important strategic decisions. Regulatory costs, combined with fierce competition from the marketplace, particularly as it relates to loan pricing, and declining demand for branch services, are causing many Community Banks to…

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