Commercial lending

A gauge of U.S. firms extending credit climbed in December to the highest level in almost 18 years, signaling a strong bet on the economy’s prospects and heavy investment in automation.

The Secured Overnight Financing Rate has benefited — amid the phaseout of Libor — from positive comments by regulators. Is a multirate environment, which some banks would prefer, still possible?

Shares of Medallion Financial plunged Wednesday after U.S. regulators accused the New York-based lender to taxi drivers of seeking to illegally boost its stock price amid intense competition from Uber Technologies and Lyft. 

Credit risk management is about to get a lot more complicated for commercial lenders as major central banks raise interest rates. Banks need to learn to parse new kinds of data to avoid problem loans.

Asenso Finance and a community development financial institution, the National Asian American Coalition, have developed a loan aimed at borrowers with limited credit histories. The underwriting relies in part on alternative data and borrowers are required to take financial literacy courses.

The Atlanta bank said the deal will accelerate its small-business and commercial and industrial lending while expanding its presence in point-of-sale financing.

A few changes to underwriting rules could result in a huge opportunity for both lenders and minority women who own businesses.

Bank of America is hiring thousands of employees this quarter and investing heavily in talent and technology headed into the new year, CEO Brian Moynihan says.

Business lines south of the border, led by a diversified commercial banking unit, contributed more than 40% of total earnings at Bank of Montreal over the past 12 months. Company executives now see an opportunity in selling wealth management services to commercial clients.

CEO Jane Fraser said the bank isn’t a fan of the idea of simply asking clients to dispose of any so-called brown assets, which would just shift the problem to a new owner.

U.K. authorities expect to recover as much as 2 billion pounds ($2.7 billion) of fraudulent COVID loans over the next year, Chancellor of the Exchequer Rishi Sunak said on Tuesday.

In a semiannual report on trouble spots in the banking sector, the Office of the Comptroller of the Currency raised concerns that banks are taking on too much risk in pursuit of earnings growth.

On Sep. 30, 2021. Dollars in thousands.

Bank of Montreal’s heavy focus on commercial lending is paying off as businesses in the U.S. and Canada ramp up borrowing. 

Four of the six bankers joining Nashville-based Pinnacle Financial Partners worked in Truist Financial’s aerospace, defense and government contracting unit.

On Sep. 30, 2021. Dollars in thousands.

Farmers and the banks that lend to them are prospering again after several lean years, thanks to high crop prices and government subsidies. But sagging loan demand, inflation and what some observers see as a bubble in land values are fueling concern that the revival will be short-lived.

Alternative lenders, which often use aggressive underwriting tactics to generate high returns, were closing in on banks even before the pandemic. Now they've pulled ahead.

On Jun. 30, 2021. Dollars in thousands.