Provident teams with AMG to create "Swap Desk" for Community Banks
Published November 29, 2015 / In Community Banks and interest rate swaps
AMG's Flex Loan program will remain a key product for community bank lenders, particularly as 2016 signals the end of the Fed's zero rate policy. But, Provident will expand the loan hedging platform with PRM Swap Desk, a front to back customer swap platform. The Swap Desk program provides a turnkey solution to allow community banks to offer swaps to commercial borrowers. Provident will work with bankers to present and address customer questions on swaps, will provide streamlined ISDA documentation, manage swap execution to ensure clients get the best rates, and provide comprehensive reporting over the life of each swap. With the PRM Swap Desk community bankers can provide a valuable service to their borrowers and generate fees in return. A typical $50 million portfolio of loan swaps can generate fee income of $500,000. All fees are paid by Wall Street swap dealers; all fee income is recognized upfront.
Call PRM (704 243-1439) or AMG (800-226-1923) to schedule a review of swap strategies for community banks and learn how your bank can benefit. http://ow.ly/VlVI2