Boardroom Forum on Lending
December 6, 2011
New York City
For 20 years, Bank Director has supported CEO’s, senior management and members of the board of financial institutions as they develop strategies for building and running their companies. Boardroom Forum on Lending, hosted by Bank Director in partnership with NASDAQ OMX®, assembled industry leaders to examine the board’s role in lending. Bankers all across the country are beginning to tighten up their lending practices as a response to the regulatory pressure they are under to keep lending plain, conservative, and firmly under control. Lenders and risk managers have also relearned the high positive correlation between asset quality and having a strong relationship with the customer.
While no industry has gone unpunished in the last few years, banks have been particularly hard hit, with loan growth lagging many expectations. From the recent sell off in public bank equities to heightened regulatory scrutiny, limited merger partners to far-less loyal customer bases, a bank's board has numerous issues to deal with. One major concern is growing good loans in today's tumultuous economy. In the second quarter of 2011, we saw lending activities generate the vast majority of revenues at small and mid-size banks. Banks $10 billion in assets and smaller typically do not have mature capital markets, nor the products to offer mortgage banking, wealth management and insurance to their client base.
Consequently, one must ask:
- What is the bank's board's role in lending and risk management, especially at a time when financial institutions have placed renewed emphasis on organic growth?
- How can the bank's board manage risk if there is a change in lending strategy?
- What can be done to grow organically in a tough environment to find creditworthy borrowers?
Attendees heard from industry leaders and experienced advisors as they explored potential ideas, Bank Director was pleased to have NASDAQ OMX® partnering with us to offer the Boardroom Forum on Lending at the NASDAQ MarketSite® in New York City.
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