Optimizing Loan Duration
South State Correspondent
MAY 23, 2022
Customers and competitors are challenging community banks to extend loan duration – borrowers are eager to lock fixed rates before they rise further, and many competitors are happy to oblige. But what are the optimal fixed terms for community banks given today’s interest rate, credit, and liquidity environment? While every bank’s mix of deposits and loans is different, community bankers should consider some common themes in the market when optimizing their balance sheet loan portfolio.
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