How Much Scale Is Needed to Remain Viable?

As we continue into 2019, many institutions are looking for ways to maintain and grow profitability. At ALM First, we suggest going back to the basics with these three core lending principles: asset pricing discipline, marginal return analysis, and leverage strategies.

Learning agility is openness to new information and the ability to gain and apply insights derived from this information. People with this trait often follow a nontraditional path and can develop professionally from an array of diverse experiences. 

CECL will require lenders to predict lifetime losses for the loans they make and recognize them on the day they are booked. It represents a sea change from the current incurred-loss formula, which permits lenders to record charge-offs when losses are imminent.