Best Practices for Middle-Market Lending

Long seen as a consistent, stable income provider, the middle-market segment of commercial lending is beginning to strain under ever-expanding competition, compounded by shrinking margins and a diminishing client base. Realizing that traditional revenue sources have become fatigued, institutions are...

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Bibliographic Details
Published inCommercial Lending Review Vol. 20; no. 4; p. 17
Main Author O'Connor, John A
Format Trade Publication Article
LanguageEnglish
Published Riverwoods CCH INCORPORATED 01.07.2005
Subjects
Automation
Banking industry
Banks
Benchmarks
Best practice
Commercial credit
Incentive plans
Lending
Loans
Market segments
Portfolio management
Small business
Underwriting
United States > US
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Summary:Long seen as a consistent, stable income provider, the middle-market segment of commercial lending is beginning to strain under ever-expanding competition, compounded by shrinking margins and a diminishing client base. Realizing that traditional revenue sources have become fatigued, institutions are searching for alternate methods to maintain competitive position and viability. A recent benchmarking study analyzed the lending practices of top U.S. banks whose aggregate outstandings represent more than one-third of the commercial outstandings in the United States. This study revealed the continued trend among forward-thinking institutions toward more centralized processing, increased automation and more disciplined, standardized pricing. This article examines the detailed work flow for every relevant position within each organization in order to determine the unique drivers that make that organization successful, whether they are policy, practice, technology or division of duties among staff. This provides a clear picture of an organization's investments, processes and policies. Using the benchmark data, participants can make decisions based on real-world information.
ISSN:0886-8204