There are also inputs to making profitable project loans – such as the availability of CASA deposits – that will be accrue to the banks that build out their IT to access and serve the broader saver cheaply and effectively. Few banks have the inhouse talent to do all this now, but preparation is imperative.
2  BIS central bankers’ speeches  An area of more intensive use of IT and analysis is customer loans, which is my second example. It seems today that, having abandoned project loans, every bank is targeting the retail customer. Clearly, the risks in this herding will mount over time, as banks compete for less and less creditworthy customers.