In discussing strategic objectives with financial institutions across the United States, a common theme that I hear from CEOs and Chief Credit Officers is the need to diversify their loan portfolios so they aren't so concentrated in commercial real estate. And a common solution they are considering is to increase commercial and industrial (C&I) lending.
What is that old saying? …“Easy to say. Hard to do.”
Why is diversifying your loan portfolio difficult? Is it because businesses in your area don’t need working capital financing to help them thrive and create employment? I doubt that.