Successful loan pricing model implementations rely on many variables including management commitment, lender buy-in, and proper software calibration. Calibration is a 2-step process requiring accurate assignment of product profitability assumptions, and then based on those assumptions, product by product ROE target assignments

Essential Concepts in Pricing Loans Many financial institutions experienced record earnings in 2018.  The one-time impact of the new tax law coupled with continued improvement in both asset quality and loan yields more than offset the rising cost of funds banks experienced in the second half of the year. In 2018, The Federal Reserve continued