tag:blogger.com,1999:blog-235433516644980443.post8144772189702648376..comments2024-03-27T05:08:10.195-04:00Comments on Jeff For Banks: Consumer Lending: Should Banks Do It?Jeff Marsicohttp://www.blogger.com/profile/12153599647481141591noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-235433516644980443.post-79631910039166002522018-04-23T08:00:00.858-04:002018-04-23T08:00:00.858-04:00That would probably be zero Mike. Most resources a...That would probably be zero Mike. Most resources at community banks that work on consumer lending have primary duties elsewhere, such as branch staff, underwriters/credit, and loan servicing. Consumer is a small part of their duties because it is a small part of the banks' strategy, in my experience.<br /><br />The Q behind the Q, is without consumer lending, how much expense can we remove?<br /><br />Thank you for the comment!<br /><br />~ JeffJeff Marsicohttps://www.blogger.com/profile/12153599647481141591noreply@blogger.comtag:blogger.com,1999:blog-235433516644980443.post-39010737060223958042018-04-13T13:32:20.449-04:002018-04-13T13:32:20.449-04:00Jeff -- I'd be interested in knowing the margi...Jeff -- I'd be interested in knowing the marginal cost of a consumer loan. If it is proprietary, then I respect that. But if the marginal revenue exceeds the marginal cost, then the hurdle rate for getting into the line of business is not as high. I understand the trap associated with marginal profitability, but at the same time, as you noted, fixed costs just get allocated somewhere else if you do nothing. Anonymoushttps://www.blogger.com/profile/07875534656340044646noreply@blogger.com