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Reviewed by Leonard Smuts for Readers' Favorite
The commercial banking sector is vital to the economy and provides a stable and rewarding career path to job seekers with the necessary motivation and aptitude. Steven J. Crane provides valuable guidance for those considering employment in this field in The Pathway to a Career in Commercial Banking. He discusses the differences between commercial banking and the smaller regional banks, with the latter being more retail-orientated. The core of banking is to take deposits from investors and lend the money to companies and individuals who require funding. New entrants to the banking sector will begin by learning to assess the creditworthiness of prospective borrowers. While a university education is helpful, mentorship schemes and in-house training also provide a solid background. Credit management requires a risk analysis that involves what the author describes as the 5 C’s - character, capacity, capital, conditions, and collateral. Understanding the client’s business and circumstances is vital in structuring loans, as is the personal touch. Promotion will lead to soliciting new business and exposure to general management as a commercial banker. Other topics include the establishment and updating of a credit policy framework while ensuring that the bank itself remains financially sound and complies with the strict regulatory framework.
Steven J. Crane speaks from a position of considerable experience, having begun his involvement in the banking sector with a large regional bank before becoming the President and CEO of a community bank based in the Midwest. He outlines the advantages and disadvantages of both types of banks, contrasting the more rigid management structure of the larger regional banks and their client base of higher profile corporations with the more personal style of the smaller community-based banks, which can provide scope for more individual employee participation in decision making. The choice is a matter of personal preference. The author shares an interesting insight in that he became involved in community projects, allowing him to meet more people, contribute to the community, and engage socially with clients. The impact of the 2008 recession and COVID-19 illustrate just two of the unanticipated risks involved in banking that are featured. The Pathway to a Career in Commercial Banking is concise and well-written in a style that makes it a pleasure to read. It is couched in layman’s language and technical terms are explained in the comprehensive glossary that rounds off the publication. The author’s enthusiasm for his work shines throughout. The book will provide a valuable resource for those considering a career in banking and is highly recommended.