Episode Details

In this episode we review two articles from Bank Director titled “Rising bankruptcies are a warning sign for banks” and “Banks should not chase loan growth right now”. There is a strong correlation between rising business bankruptcy filings and commercial loan write offs. Yet, commercial delinquencies and loan write-offs remain very low. Should banks be preparing for a turning of the credit cycle? If business bankruptcy filings are a flashing red light, should banks be chasing loan growth right now? Links to both articles are included below.

Link: Rising Bankruptcies Are a Warning Sign for Banks | Bank Director

Link: Banks Should Not Chase Loan Growth Right Now | Bank Director