Oct 10 2018
"Where we sit in a credit cycle is difficult to predict. If not impossible. Credit performance, like delinquencies and charge-offs, lags well behind business cycles."
Recession warning signs aren’t always obvious. Seasoned bankers know this and bank regulators will “test” a bank's theories, practices, models and policies.
Yet there are fundamental factors that are often ignored by commercial banks: The Eight Deadly Sins of Lending. Fundamentals that matter regardless of where we sit in the credit/economic cycle. These basics become increasingly relevant to bank performance when the uncertainty of the next recession’s gloom creeps forward despite seemingly good news on the economic front.
