Normally, banks record profits on loans only as they are repaid, whether they securitize the loans or hold them on their books.
Stronger regulation and supervision aimed at problems with underwriting practices and lenders' risk management would have been a more effective and surgical approach to constraining the housing bubble than a general increase in interest rates.
I learned how to lend money by cleaning up the messes of others who had made loans before me.
I'm an executive director at a company which gives out retail loans.
Banks need to continue to lend to creditworthy borrowers to earn a profit and remain strong.
Expertise and judgment in the art of lending for novel ventures must be reacquired.
It is the quality of lending over the quantity of lending.
If I'm a bank, and I'm making risky loans, I have an incentive, if I can, to make those loans using other people's money: in other words, to make highly leveraged loans.
If you are in banking and lending, surprise outcomes are likely to be negative for you.
Banks lend by creating credit. They create the means of payment out of nothing
One of the risks for anybody in the lending business is that being conservative can harm your competitiveness.
You can design a mortgage system that is different without a Fannie and Freddie, but there are principles you have to have, to have a good system.
Because SBI is so large, serving customers in India's big cities and small rural villages alike, it has a pressing need for better tools and technology to monitor lending risks.
