Recording - Pricing Loans in Uncertain Times - Fa21

Course Length
90 mins

Instructor
Dave Koch

Price
$275.00

Description

Presenters:  Darryl Mataya, Abrigo

This 90-minute program will be presented live on: October 28, 10:00-11:30 a.m. Central Time
Recording available through: January 28, 2022
Price: $275

Market rate uncertainty, credit risk concerns, and borrowers wanting longer-term loans are just some of the pressured facing financial institutions today as they look for quality lending opportunities to support overall margin levels.   Risk avoidance, or improperly assessing those risks can lead to suboptimal loan yields and margins in the years ahead.  Of worse, insufficient earnings to cover the real risks and costs of decisions implemented.  Too often, loan pricing discussions focus on metrics and approaches that ignore the realities of the moment.  Pricing a loan in times of tight liquidity and high demand is very different than when the financial institution is flush with liquidity. 

In this session we will outline why many approaches to pricing fail by starting out with the wrong pricing approach.  Instead, we will present a pricing  approach and analytical framework that adapts to conditions, assesses the risks and costs, and provides the foundation for "relationship pricing".

Attendees learn:

  • The two primary measures to assess loan pricing profitability
  • How to integrate internal costs of lending into the pricing equation
  • The impact of balance size, amounts drawn on lines, and other critical assumptions to overall profitability
  • Best practices approach to assessing funding costs for new loan offerings
  • How to compare different loan terms and options to find the "most profitable" options under different markets
  • How to incorporate other relationships into an overall relationships profitability view

Target Audience:  CEOs, CFOs, ALCO members, controllers, chief risk officer, chief retail, funding officers

Shopping Cart

Your cart is empty