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A Decade On, Lending Transformed By Crisis And Innovation

PYMNTS

And in lending, with the financial crisis in the rearview mirror, a decade on, invention – okay, innovation – has become a hallmark, at least in some corners. But a standstill in the credit markets created a vacuum for a bit, at least along traditional lending conduits. Necessity is the mother of invention.

Lending 148
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Four Reasons for the 2007-08 Financial Crisis

Jeff For Banks

A recent Bank Think post by ConnectOne Bank CEO Frank Sorrentino regarding restoring Glass-Steagall got me thinking about how far the debate has drifted from the root causes of the 2007-08 financial crisis. In 2007, that number climbed to 127%. Mortgage-Backed Securities (MBS) almost tripled between 1996 and 2007, to $7.3

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How The Lending Landscape Is Quietly Changing

PYMNTS

Interest rates plummeted as the Fed held the federal funds rate at zero in the hopes of stimulating lending in an environment where credit went from dangerously free-flowing to dangerously non-existent in the span of a few months. People are buying houses such that there is now a supply shortage in the market. economy.

Lending 137
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Lending Club’s Terrible Twos

PYMNTS

Two years ago today, Lending Club was ringing the bell on an IPO that one early investor called “a no-brainer.”. The consumer credit market has huge potential — trillions and trillions of dollars — and I wanted to ride that winner. I crossed paths with Laplanche back in 2007 and wanted to back him right away,” Petrushka said.

Lending 100
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Investors Balk At Talk Of Alt-SME Lending Collapse

PYMNTS

The alternative small business lending market took home the biggest slice of cake this week with about $33.5 That may not have been surprising this time last year, but today, considering talk of lackluster performance by these innovators — plus recent warnings over a total market collapse — that funding is pretty impressive.

Lending 100
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CRE Credit Risk – What You Need To Know Now

South State Correspondent

While the market focuses on deposits and liquidity, media pundits and analysts are waiting for credit problems to appear. CRE Risk Background While ten years ago, community and regional banks use to make up some 55% of the CRE market, in 2023, these banks now compose approximately 72% (below). touched off a wave of bankruptcies.

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Consumer Lending: Should Banks Do It?

Jeff For Banks

When I first read Standards Needed for Safe, Small Installment Loans from Banks, Credit Unions by the Pew Charitable Trusts that encouraged financial institutions to get back into small ticket consumer lending, I thought “what are they nuts!” So why would banks expand small-ticket, unsecured personal lending? Real estate secured.

Lending 60