Loan Outlook for Banks is Shaky After PPP Ends

Total loans at banks fell by 1.5 percent during the first half of June, according to data compiled by the Federal Reserve; “It’s just a very hard environment to see what borrower is going to be a good credit and who’s going to be a challenge,” said Jon Winick, CEO of Clark Street Capital in Chicago, to American Banker. “It’s going to be very difficult to develop new business.”; when the PPP loans roll off their books banks will find it hard to replace them; mortgage refinancing could be one area where they can make up the difference since rates are so low and there are various fees associated with mortgages; the continued uncertainty will in all likelihood remain for the rest of 2020 and banks are being conservative in their forecasts; “You’re much more likely to see us be more on the conservative side,” Gordon Smith, CEO of JPMorgan’s consumer and community banking business, said during a June conference according to American Banker. American Banker.

Todd is the Chief Product Officer of LendIt Fintech.

He is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists.

He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences.

He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.

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