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Article: RMA lending outlook for 1995. (Robert Morris Associates)
- Article from:
- Business Credit
- Article date:
- June 1, 1995
- Author:
CopyrightCOPYRIGHT 1995 National Association of Credit Management. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Last year is fading into banking memory as the year too many of us bankers chased too few borrowers, and 1995 is materializing as the year more and more of us would like to forget. Squeezed between price competition and the rising cost of funds, we bankers are sacrificing our profit margins as our borrowers push us harder for no-string loans. These kinds of loans are the high-risk deals that made the last recession so painful. If there is no profit reward for taking these risks, the penalty looming ahead is likely to be another round of losses for us bankers.
Just last fall, Fed Chairman Allan Greenspan warned the banking industry that it remained an open question ...