CUSTOMIZED CREDIT: "You can look at your balance sheet and design the exposure you want. We like these credits for diversification but banks need to feel comfortable with the underwriting and understand the businesses," says Chris Nichols, chief strategy officer at CenterState Bank.
A number of community banks took sizeable hits during the financial crisis due to dealings in participation loans. As more banks to reconsider these loans, some industry observers wonder if banks will stay disciplined.
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