Correspondent Blog
Tag: Rising Funding Costs
01/30/23
Should You Adjust Loan Pricing Due To Rising Funding Costs?
Rising funding costs and decreasing liquidity at community banks are causing managers to change pricing methodology for new credits. This makes some sense, as in other industries, if your input pricing goes up, you often adjust your end pricing. We estimate that 25% to 50% of community banks have a policy requiring minimum yield or…