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Lending Practices

All articles tagged with #lending practices

finance1 year ago•14 min saved

Tightening Credit: Q4 2023 Lending Practices and Alternative Channels

The January 2024 Senior Loan Officer Opinion Survey on Bank Lending Practices (SLOOS) revealed that banks tightened standards and reported weaker demand for commercial and industrial (C&I) loans to businesses of all sizes, as well as for all commercial real estate (CRE) loan categories. Additionally, lending standards tightened for residential real estate (RRE) loans and home equity lines of credit (HELOCs), while demand weakened for various loan categories. Banks also expect lending standards to remain unchanged for C&I and RRE loans, but to tighten further for CRE, credit card, and auto loans in 2024, with loan demand expected to strengthen across all categories and loan quality to deteriorate.

via Federal Reserve|

#bank-lending #economic-outlook #finance

finance2 years ago•6 min saved

The Controversial Collapse of Silicon Valley Bank: A Comprehensive Analysis.

Uncommon lending practices, including a heavy concentration of securities-backed loans, contributed to the spectacular and fast collapse of Silicon Valley Bank, raising questions about risk management by its executives and board. The bank's venture debt business may have also been problematic as tech and startup valuations fell. The bank's small cash cushion and rapidly ballooning deposits may have also contributed to its downfall. The bank is being investigated by federal prosecutors and the SEC, and investors are worried about the health of other U.S. and global banks.

via NBC News|

#finance #lending-practices #risk-management