November 22, 2011

Has Banking Become A Competitive Sport

Filed under: Uncategorized — comparadungrp @ 3:39 pm

The current economy has not been worse since 1929, the last major financial collapse.  The banking industry has suffered and the commercial banks are very deliberate in choosing to remain with existing commercial clients and choosing new clients.  They are picking their teams for the future.  There is an urgent need to generate earnings, but the risk managers have taken a stand to keep their portfolios void of troubled loans.  They are looking for that credit that can run a 4.3 forty yard dash, has a vertical leap of at minimum of 39 inches and can be durable for seasons to come.  As customers/ prospects present their credits to the bank ,they have to show consistent liquidity of 1.5 x’s for a current ratio, the debt to net worth ratio must be less than or equal to 3.5:1 and declining.  More importantly, how will the cash flow hold up over the next 3-5 years?  Will your company survive the cut to be on the team?

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