Summary
No one could force customers directly, yet good marketing skills and appropriate risk management is always working. Also the rule garbage in garbage out is still the king.
Analysis
People want to take credit anywhere, yet the problem is with whom? Banks reliability has always been a very important trait.
If banks do not push for lending deals it means they must do something more profitable? What would be that is the question? Or why they were bailout in the firstplace?
French bailout banks are no different then German, Swiss or British bailout banks. The trouble for them all started from toxic assets. There is a normal temptation to stay away from the origination of such deals. Also, it is true that this financial crisis affects good and bad portfolios of customers, but there basic appropriate risk management appraisals are still available, despite potential regulatory changes and economic environment worsening.
What is to do next? Go for the good guys and leave apart the bad ones, both customer-wise and bank-wise.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
