Loan growth. Ears of bank CEOs across the country perk up when those two words are spoken, especially now in 2022. But there’s a caveat to that as well.
Grow loans too quickly and regulators will be all over you, assuming all manner of misdeeds. Too slowly and your earnings and NIM suffer.
Many bank CEOs tell me they’re doing well…but they see danger on the horizon with small businesses being squeezed from every angle at the same time.
The smart ones from the highest-performing banks are the most nervous. That’s always a sign of what is next to come.