September 4, 2024
10am-10:30am
Member Fee (Live or Recording): Complimentary to LBA Member Banks
Credit conditions are often indicators of banks’ willingness to lend that helps sustain, inflate, or deflate economic activity. When economists discuss changes in the federal funds rate, the most commonly discussed relationships are unemployment, gross domestic product, and inflation expectations. Credit conditions are frequently overlooked! This session evaluates the federal funds rate, lending activity, asset quality trends, and net interest margin to see how your institution could be impacted during the next rate cycle. Preparing for these inevitable changes can often be a lengthy process involving evaluating historical experiences, credit concentration migration, and loan pricing disciplines. Implementing these steps is not only a best practice, but a necessary exercise in protecting shareholder value.
Learning Objectives and Key Takeaways:
- Discover how credit cycles and interest rates impact lending activity, asset quality, interest rates, margin, and ultimately, profitability.
- Learn where we currently are in the credit and rate cycle.
- Gain strategies to protect your institution from credit losses and prevent further ROA and ROE compression.
Lenders and Credit Analyst
Omar Hinojosa is a Managing Partner at HUB | Taylor Advisors, he works with financial institutions across the country providing balance sheet and risk management solutions to improve profitability. Mr. Hinojosa has banking, investment, and private equity experience and is a frequent thought leader for banking industry organization programs nationwide. He holds the Chartered Financial Analyst (CFA) designation.