A recent US Banker article describes how “total loans are shrinking because of soft demand.” Many banks have turned the corner with loan losses and write downs, but now it is time to rebuild battered loan books.
Demand for loans is currently low, and banks need to be innovative to attract more loan business. The challenge will be to find the right way to bring in more loans without increasing risk exposure beyond acceptable levels.
There are many important components to getting this right. A key element that is sometimes overlooked is the quality of your team of loan officers.