Staying Nimble With Commercial Loan Pricing
March 12, 2024In the world of commercial lending, the prime lending rate has traditionally been reserved for borrowers deemed to have the best credit quality and lowest probability of default. Credits of lesser quality are normally charged a higher rate, representing a spread over the prime rate. With the rapid increase in the prime rate over the last two years, coupled with intense competition for loans, many new loans are being quoted at 100 basis points or more below prime. Join Forvis Mazars for an informative webinar to explore why we are seeing so much "prime minus" lending and how the use of a disciplined loan and relationship pricing model can help lenders respond appropriately.
Learning Objectives
Upon completion of this program, participants will be able to:
- Discuss why there is so much "prime minus" lending.
- Identify how lenders should respond to the market forces stressing their margins.
- Describe how a disciplined relationship pricing model can quantify the profitability impact of today's environment.
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