Posts Tagged ‘Small Business Banking’

Sleepless in Chicago

Saturday, January 2nd, 2010
Booth School of Business University of Chicago

Booth School of Business University of Chicago

Who goes to Chicago in the fall and winter months? Well, I do. I had the privilege to speak at the annual small business banking conference sponsored by Source Media, publisher of American Banker. I appreciate the opportunity to hear the banker’s perspectives on declining commercial and small business loan volumes. One theme that emerged in the discussions was the opportunity afforded by the recession to improve underwriting discipline while rebuilding banks’ capital bases.  While that is hardly the news we want to hear, to be fair to the bankers, regulators have put them in an impossible position. Privately, bank supervisors hector management about extending credit while publicly, politicians pillory them for their failure to do so. It is a no win situation for the banks. Economics, not politics, should drive small business lending decisions. I took advantage of my stay to meet with Linda L. Darragh, Clinical Associate Professor of Entrepreneurship at University of Chicago’s Booth School of Business. A passionate advocate for entrepreneurship, she initiated a venture fund and served on the Mayor of Chicago’s high technology task force. I took full advantage of her insight and suggestions as to how to improve my own business operations. So that encouragement compensated for the gloomy credit outlook! Actually, my visit to Chicago was a joy all round and I look forward to returning.