Scaling Commercial Lending Through Capital Markets: Mid-Size Bank Strategy

Today, commercial lending looks different for mid-size banks. Growing client expectations and pressures from larger competitors are turning these institutions toward capital markets partnerships to expand their offerings. It’s a strategic shift that maintains their competitive edge without sacrificing their relationship-driven approach. Let’s take a closer look at how these strategies are reshaping what mid-size banks can achieve in 2025 and beyond.

Meeting Business Lending Demands in Today’s Market

Commercial lending is changing fast. Business clients want bigger, more complex commercial loans—often beyond what mid-size banks can handle independently. This makes it harder for banks to grow in a marketplace that is already saturated. And with today’s interest rate volatility and tighter credit conditions, financial institutions need to be even more thoughtful with their lending decisions—carefully balancing growth opportunities against potential defaults.

To stay competitive and meet their clients’ heightened capital needs, mid-size banks are teaming up with peer institutions through co-lending and capital markets strategies. These partnerships help banks take on larger deals while continuing to manage risks in the best way possible.

Academy Bank’s Capital Markets Strategy

Academy Bank is putting this strategy into action by moving beyond traditional loan structures and scaling alongside our clients. We have significantly expanded our lending capacity by partnering with peer institutions through co-lending arrangements and loan participation. Doing so has enabled us to sharpen our operations and maintain strong risk standards.

These partnerships are already making a difference: We have helped finance major real estate projects and private equity-backed deals—transactions that would have been out of reach in the past. Working together with like-minded institutions has given Academy Bank the capacity to take on larger, more complex deals than ever before.

The result? Lasting client relationships, a stronger loan portfolio, and a clear path for long-term growth.

The Future of Commercial Lending for Mid-Size Banks

At Academy Bank, we approach banking from a different point of view: our clients’. It’s this focus that makes our recent expansion strategy so intentional. We know that growing through capital markets doesn’t mean losing our personal touch. We care about providing our clients with quick, local decision-making, and personalized solutions. Working with other institutions has allowed us to grow while staying rooted in the communities we serve.

Looking forward, we see that collaboration is the best strategy for mid-size banks. Instead of competing head-to-head, partnerships offer flexible solutions that fit what clients actually need.

So, what does this approach mean for the future of relationship banking? It demonstrates that with the right expertise and strategic partnerships, mid-size banks can lead—not just keep pace with—commercial lending innovation.

Top Commercial Lender for Innovation: Academy Bank

At Academy Bank, we believe that commercial lending should accelerate your business growth. Our capital markets strategy is just one way we are helping clients access smarter, more flexible business financing solutions.

Whether your company is planning your next big move or simply looking for a lending partner who understands your financial goals, our commercial lending team is here to help. Discover how we can fuel your growth with solutions that are built around you.

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