Banks Grow Their Loan Books With Mostly Prime Borrowers

With most of the large banks reporting earnings this week one trend has become clear; as the loan books have grown delinquencies have not grown as fast; this is due to the strong economy and also the focus on prime consumers; those more risky borrowers are simply not able to obtain a bank loan today; severely delinquent consumer loans at Wells Fargo have dropped for 22 quarters in a row, at Bank of America it is 23 quarters in a row; many bank CEOs opined on the strength of the US consumer but they were really only talking about prime consumers; those banks that did venture into the near-prime or subprime consumer have shut down these lending programs with PNC Financial Services Group CEO Bill Demchak saying on their earnings call this week, “We aren’t a subprime lender. We don’t understand it. We don’t want to be that person.” American Banker

  • Emily Donato

    With efforts in many different areas of the team, she helps manage, organize and execute digital and event content. She works with webinars, podcasts, social media along with managing the hundreds of speakers that attend our conferences. Emily was a part of the Zimmerman Advertising Program at the University of South Florida. She graduated in 2019 receiving a Bachelor of Science in Business Advertising.