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Loan Pricing Strategies for Community Banks

Financial regulators want to see the board’s statement of risk philosophy, including a statement on risk appetite. Nevertheless, just as important to them is the viability of a bank’s earnings performance because it is the first line of defense against loan losses and capital erosion and because it supports asset growth.

Loan pricing is the primary driver of earnings performance. Most financial institutions do not use a systematic loan pricing approach to lending. Many price to their competitors. However, to develop a more formal risk management program, financial institutions will need to articulate their loan pricing strategy in their formal written program. This completes the risk/reward formula.

This presentation will address seven objectives for loan pricing, review pricing strategies and pricing constraints, and develop a six-step process for implementing a loan-pricing strategy.

Recorded Wednesday, June 11, 2014

Continuing Education: Attendance verification for CE credits upon request

HIGHLIGHTS

  • Integrating loan pricing into your risk management program
  • Seven objectives for loan pricing
  • The bases for your loan-pricing structure (method/formula)
  • Pricing constraints
  • Offering alternative pricing solutions
  • Pricing strategies
  • Six steps for implementing a loan-pricing strategy

  • TAKE-AWAY TOOLKIT
    • Employee training log
    • Quiz you can administer to measure staff learning and a separate answer key

WHO SHOULD ATTEND?

This informative session would best suit chief risk officers, ALCO members, credit risk officers, chief lending officers, commercial loan officers, and business development officers.

PLEASE NOTE: Program content is subject to copyright and intended for your individual financial institution’s use only.

MEET THE PRESENTER