Correspondent Blog
Tag: Liquidity Risk
10/15/24
How Banks Create Liquidity Risk for Borrowers
In a previous article, we discussed how a loan’s maturity and amortization impacts credit risk and profitability from the bank’s perspective (HERE). In that article, we pointed out that the average commercial loan term at community banks has been decreasing and is now between 3.5 and 4.5 years. Much of the explanation for the decrease…