Janet Yellen, Federal Reserve Chair, gave an encouraging speech yesterday at the Independent Community Bankers of America (ICBA) – 2014 Washington Policy Summit. She highlighted the fact that community banks have started to increase the pace of lending, and she went on to reassure community bankers that future regulation would not be overly burdensome.
“…After several years of reduced lending following the recession, we are starting to see slow but steady loan growth at community banks … While this expansion in lending must be prudent, on balance I consider this growth an encouraging sign of an improving economy…”
She also said that banks with strong management and less risky portfolios would get less oversight – a welcome signal for the more disciplined community bankers out there.
If you’re seeing an uptick in lending at your bank, we hope that you’re pricing appropriately for the risk associated with every deal. That’s the only way to ensure that your portfolio is ready to weather any potential storms. Check out the article on CNBC when you have a few minutes… it’s definitely worth your time.