The community banking model is supposed to be simple: take deposits, make loans. There is, however, a growing number of banks that are largely omitting the lending part of the model.
As loan yields get tighter and key mortgage rules remain unclear, more community banks are reducing their lending and investing more in securities portfolios. These loan-averse lenders are following a conservative strategy that a subset of banks have been using for years, a strategy where lending plays a minimal role.
Register or login for access to this item and much more
All On Wall Street content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access