GSB – Pricing Loans in Uncertain Times

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

Darryl Mataya, Abrigo

Registration Option

Live presentation $275

Recording available through Jan. 28, 2022


Oct 28 2021


10:00 am - 11:30 pm

More Info