Jeff Judy

Jeff's Thoughts - March 27, 2013

What I Believe About Credit

Credit decisions are not made in isolation, they are an activity that occurs in context. And an important part of that context is the mindset of the people making the decisions.

I'm referring to an underlying pattern of talking and thinking about credit-related matters that influences the quality of the decisions made and their impact on the success of the bank. Many times this mindset is never formalized or explicitly discussed. It is part of the culture, of the "how we do things around here" background to credit operations.

Indeed, one of the services I provide to clients is help in explicitly examining their cultures, their credit mindsets, and helping them ensure that the right vision of how things should be done is shared across all levels, functions, and locations of credit staff.

And from decades of doing that kind of work, I have come to my own set of core beliefs about credit. If you've been a subscriber to Jeff's Thoughts for a while, you probably have picked up a lot of the themes that are most important to me. But if you're new to this e-zine, well, here's full disclosure, if you will, of my own biases surrounding credit:

I have found that these core beliefs have served me well -- and have served my clients well -- over many years. They are as valid in boom times as they are in a recession, or as they are in the current recovery.

Is there a common mindset at your institution? What's your set of core beliefs?