Small Business and Commercial Lending As A Growth Driver and Area to Proactively Manage Risk

• Jul 2, 2020
• By Shondell Varcianna

Due to their size and complexity, small business and commercial loans are more time-consuming to originate and manage over the life of the loanand typically comprise a larger share of the balance sheet compared to their consumer-focused counterparts.  They also drive an outsized share of profits and balance sheet risk as well.Business and commercialloans and deposits continue to be a top growth priority among banks in 2020, according to Cornerstone Advisors. Due toa high demand by both lenders and borrowers, 2020's commercial lending activity, both in originations and modificationsis anticipated to exceed2019 because of COVID-19. There are three key areas of business and commercial lending that banks and credit unions can focus on to g...

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