The Call for Effective Covenant Monitoring Has Never Been Louder
Posted on July 22, 2024 by Baker Hill
In the world of commercial lending, banks and borrowers are paying close attention to their financial covenants. And for good reason: covenants enforce minimum financial performance conditions on the borrower. These loan covenants are not a pre-decided set of principles...

Mitigating CRE Concentration Risk in 2024
Posted on July 15, 2024 by Baker Hill
According to a Federal Reserve Bank of St. Louis report , market sentiment about the CRE office sector declined sharply over the last two years, with the Bloomberg REIT office property index falling 52% from early 2022 through the third...

The Evolution of Risk Management: Is Your Culture Keeping Up?
Posted on June 28, 2024 by Baker Hill
Over the last several years, financial institutions have faced an incredibly volatile economy. According to the FDIC’s 2024 Risk Review , “market risks posed challenges for the banking industry in 2023 with higher interest rates, an inverted yield curve, declining...

Risk & Growth: Two Sides of the Same Coin
Posted on June 14, 2024 by Baker Hill
In a recent article in the Financial Brand, Dr. Wendy Smith, the Dana J. Johnson Professor of Business, faculty director and co-founder of the Women’s Leadership Initiative at the University of Delaware advised banking leaders to steer between competing priorities...

Why Now is a Perfect Time for a Credit Department Tune-Up
Posted on June 10, 2024 by Baker Hill
As bankers are keeping an eye on CRE lending challenges affecting both supply and demand for capital, demand from borrowers is well off the robust pace of lending that many banks saw in 2022. The good news is that...

Building Relationships, Not Risk: How Banks Can Navigate an Uncertain CRE Market

Posted on June 6, 2024 by Baker Hill
More than four years have passed since the start of the pandemic and the CRE market is still riddled with uncertainties. Despite the cloudy outlook for CRE lending, there are undoubtedly opportunities for the banks that can balance both risk...
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