, Aug. 7, 2009 — Truly diversifying into other lending sectors such as consumer or commercial and industrial (C&I) loans will be challenging for most banks because larger banking companies dominate these business lines, reports American Banker
. Banks will probably try to increase their C&I portfolios, but regional and larger community banks still face competition from the Wall Street commercial paper market, and smaller banks might not have the right talent on staff. Despite these difficulties, according to partner Jim Rockett
, there is still room for many banks to beef up their C&I lending, particularly to smaller customers overlooked by large banks and Wall Street.