Author Archives: phillr

High Loan Profitability

Each of the products of a company has varying amounts of profitability.  The same is true in a commercial bank.  The loans, deposits, trust operations, et al each have varying degrees of profitability.  In today’s marketplace, it may well be … Continue reading

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Bank Marketeers

I just returned from giving a day presentation on asset/liability management to the ABA Bank Marketing and Management School at SMU in Dallas, Texas.  I have taught at this particular school for some time and find it to be a … Continue reading

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Competition and Loan Pricing

I have written an article for the Federal Home Loan Bank of Seattle soon to be posted in their “What Counts” publication.  The topic is competition in loan pricing.  The intent of the article is not to eliminate the role of … Continue reading

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Intest Rate Risk Webinar

On April 17, I presented a one hour webinar for the Federal Home Loan Bank of Seattle dealing with interest rate risk management in financial institutitons.  Although I discussed briefly the directive put out by the regulators on January 6, 2010, … Continue reading

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Regulatory Interest Rate Risk Directive

On January 6th, 2010 the regulators issued a directive dealing with interest rate risk in financial institutions.  It is a reminder to those institutions to review their management the “S” component of the CAMELS rating.  What institutions should take from … Continue reading

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ARE THE BANKS REALLY TAKING THE TAXPAYERS MONEY

What is it that I’m missing here?  Let’s see, the government is borrowing money in the markets at as low a rate as .01% (yes, no mistake on the decimal point) and have provided banks with funding at 8% on … Continue reading

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What is a Brokered Certificate of Deposit?

To all bankers a brokered certificate of deposit has become an issue which is a constant source of irritation.  In the eyes of the regulators it is considered to be “hot” money.  Yes, it is money received by a bank … Continue reading

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Duration IS important when pricing a commercial loan

            Along with credit risk, origination and servicing costs, the cost of funding a commercial loan is probably the least understood, and represents the highest cost in the loan pricing process.  There are many methods for determining the funding cost, … Continue reading

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Bank Liquidity

  In the banking industry liquidity has become the topic of the moment.  What is liquidity in banking?  Ask any banker and they will give you a different definition.  It can be anything from providing day-to-day funding for the operations … Continue reading

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Internet Commercial Loan Pricing Model

Jeff Judy, a premier advisor and instructor in credit, recently included an article in his web site http://www.jeffjudy.com which I wrote detailing the need for a commercial loan pricing model in financial institutions.  In Jeff’s role, he is often asked … Continue reading

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