---
title: "Meaning & Key Takeaway of: Growth at an exceptional rate is a red…"
description: "\"Growth at an exceptional rate is a red flag in banking. It is hard enough to manage an ordinary bank; to control a sprouting weed is well-nigh impossib..."
image: "https://sms4smile.com/quotes/i/1e2/james-grant-26489_banking_growth-at-an-exceptional-rate-is-a-red-f_2125985.png"
---

#  Growth at an exceptional rate is a red flag in banking. It…

![“Growth at an exceptional rate is a red flag in banking. It is hard enough to manage an ordinary bank; to control a sprouting weed is well-nigh impossible. If loans are expanding too quickly, the lending officers have probably been saying 'yes' too frequently.” quote by James Grant](https://sms4smile.com/quotes/i/1e2/james-grant-26489_banking_growth-at-an-exceptional-rate-is-a-red-f_2125985.png)   [Download](https://sms4smile.com/quotes/i/1e2/james-grant-26489_banking_growth-at-an-exceptional-rate-is-a-red-f_2125985.png) [Open image](https://sms4smile.com/quotes/i/1e2/james-grant-26489_banking_growth-at-an-exceptional-rate-is-a-red-f_2125985.png)

> “Growth at an exceptional rate is a red flag in banking. It is hard enough to manage an ordinary bank; to control a sprouting weed is well-nigh impossible. If loans are expanding too quickly, the lending officers have probably been saying 'yes' too frequently.”

[James Grant](https://sms4smile.com/quotes/author/james-grant/)

## About This Quote

This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation.

Rapid loan growth signals risky lending; controlling it is as hard as managing a wild weed.

**In simple terms:** Fast loan growth is risky.

Key Takeaway

Monitor loan growth closely.

Themes

risk banking growth control

Mood

cautious analytical

Type

financial risk

When to use this quote

- bank expansion
- credit analysis
- risk oversight

Key Concepts

lending standards risk management regulation

Questions to Reflect On

- What controls can detect early over‑lending?
- How to balance growth and safety?

A Different Perspective

Oversight may lag behind rapid expansion.

★ ★ ★ ★ ★   No ratings yet

[Banking](https://sms4smile.com/quotes/about/banking/) [Customer](https://sms4smile.com/quotes/about/customer/) [Enough](https://sms4smile.com/quotes/about/enough/) [Exceptional](https://sms4smile.com/quotes/about/exceptional/) [Exceptional Rate](https://sms4smile.com/quotes/about/exceptional-rate-4360741/) [Expanding](https://sms4smile.com/quotes/about/expanding/) [Flags](https://sms4smile.com/quotes/about/flags/) [Growth](https://sms4smile.com/quotes/about/growth/) [Growth Exceptional](https://sms4smile.com/quotes/about/growth-exceptional-4360740/) [Hard](https://sms4smile.com/quotes/about/hard/) [Ifs](https://sms4smile.com/quotes/about/ifs/) [Impossible](https://sms4smile.com/quotes/about/impossible/) [Lending](https://sms4smile.com/quotes/about/lending/) [Loan](https://sms4smile.com/quotes/about/loan/) [Loans Expanding](https://sms4smile.com/quotes/about/loans-expanding-4360739/) [Manage](https://sms4smile.com/quotes/about/manage/) [Officers](https://sms4smile.com/quotes/about/officers/) [Ordinary](https://sms4smile.com/quotes/about/ordinary/) [Quickly Lending](https://sms4smile.com/quotes/about/quickly-lending-4360742/) [Rate](https://sms4smile.com/quotes/about/rate/) [Red](https://sms4smile.com/quotes/about/red/) [Red Flag](https://sms4smile.com/quotes/about/red-flag/) [Red flags](https://sms4smile.com/quotes/about/red-flags/) [Saying yes](https://sms4smile.com/quotes/about/saying-yes/) [Weed](https://sms4smile.com/quotes/about/weed/) [Wells](https://sms4smile.com/quotes/about/wells/)

## Related quotes

> [I try not to think retrospectively. It's important, as an artist, to look forward, always. I do try to take work that involves some…](https://sms4smile.com/quotes/cillian-murphy/i-try-not-to-think-retrospectively-it-s-important-as-an-artist-to/)

[Cillian Murphy](https://sms4smile.com/quotes/author/cillian-murphy/)

> [I learned this a long time ago. If you call a guy into your office and shut the door, if there's media around, it…](https://sms4smile.com/quotes/jim-leyland/i-learned-this-a-long-time-ago-if-you-call-a-guy-into-your-office-and/)

[Jim Leyland](https://sms4smile.com/quotes/author/jim-leyland/)

> [The United States will eventually fly the Communist red flag…The American people will hoist it themselves.](https://sms4smile.com/quotes/nikita-khrushchev/the-united-states-will-eventually-fly-the-communist-red-flag-the/)

[Nikita Khrushchev](https://sms4smile.com/quotes/author/nikita-khrushchev/)

> [“You may be a serious writer if …. 10. your hard drive is littered with random notes and story ideas … but not nearly…](https://sms4smile.com/quotes/kathy-disanto/you-may-be-a-serious-writer-if-10-your-hard-drive-is-littered-with/)

[Kathy Disanto](https://sms4smile.com/quotes/author/kathy-disanto/)

> [ \[My friend and I\] decided, we'll go to Corsicana, and we'll see what the people in Corsicana say. ... We just started meeting people… ](https://sms4smile.com/quotes/elizabeth-gilbert/my-friend-and-i-decided-we-ll-go-to-corsicana-and-we-ll-see-what-the/)

[Elizabeth Gilbert](https://sms4smile.com/quotes/author/elizabeth-gilbert/)

> [Here in this ocean, in the midst of all this water, with the red flags on those distant buoys flapping in the sea breeze,…](https://sms4smile.com/quotes/banana-yoshimoto/here-in-this-ocean-in-the-midst-of-all-this-water-with-the-red-flags/)

[Banana Yoshimoto](https://sms4smile.com/quotes/author/banana-yoshimoto/)

> [It's always a huge red flag for me when somebody's reticent or reluctant or a little slow in providing thoughtful references that are a…](https://sms4smile.com/quotes/ivanka-trump/it-s-always-a-huge-red-flag-for-me-when-somebody-s-reticent-or/)

[Ivanka Trump](https://sms4smile.com/quotes/author/ivanka-trump/)

> [We might have been better off if the question of Obama's patriotism had been raised before he was first elected. Never should we ignore…](https://sms4smile.com/quotes/thomas-sowell/we-might-have-been-better-off-if-the-question-of-obama-s-patriotism/)

[Thomas Sowell](https://sms4smile.com/quotes/author/thomas-sowell/)

> [“In spite of all the red flags and signs that Marc had more baggage than Imelda Marcos taking shoes on vacation, I continued to…](https://sms4smile.com/quotes/cierra-rantoul/in-spite-of-all-the-red-flags-and-signs-that-marc-had-more-baggage/)

[Cierra Rantoul](https://sms4smile.com/quotes/author/cierra-rantoul/)

> [I think love is blind. I hate to use that cliched statement, but people, when they love somebody, they seem to be able to…](https://sms4smile.com/quotes/eric-close/i-think-love-is-blind-i-hate-to-use-that-cliched-statement-but-people/)

[Eric Close](https://sms4smile.com/quotes/author/eric-close/)

> [Democratic Rep. Charles Schumer of New York made a plea to Livingston, the incoming speaker. These new hearings, these new subpoenas wave a red…](https://sms4smile.com/quotes/charles-schumer/democratic-rep-charles-schumer-of-new-york-made-a-plea-to-livingston/)

[Charles Schumer](https://sms4smile.com/quotes/author/charles-schumer/)

> [The landscape of dating is a well-trodden horizon of red flags and green flags. Red flags are, of course, warning signs - anything about…](https://sms4smile.com/quotes/brett-cooper/the-landscape-of-dating-is-a-well-trodden-horizon-of-red-flags-and/)

[Brett Cooper](https://sms4smile.com/quotes/author/brett-cooper/)

> [Learn to trust your instincts. It will save you many woes. When RED FLAGS go up...pay attention. Step back. Watch. Gather facts. Trust YOU.](https://sms4smile.com/quotes/anonymous/learn-to-trust-your-instincts-it-will-save-you-many-woes-when-red/)

[Anonymous](https://sms4smile.com/quotes/author/anonymous/)

> [“Friends don't want to see you mess up a good thing. That's a real friend, not a red flag. Read that again. Heavy on…](https://sms4smile.com/quotes/niedria-dionne-kenny/friends-don-t-want-to-see-you-mess-up-a-good-thing-that-s-a-real/)

[Niedria Dionne Kenny](https://sms4smile.com/quotes/author/niedria-dionne-kenny/)

> ['Sticky' is about reaching a point in a relationship where you both realize you guys shouldn't be dating, but you're doing it anyway just…](https://sms4smile.com/quotes/ravyn-lenae/sticky-is-about-reaching-a-point-in-a-relationship-where-you-both/)

[Ravyn Lenae](https://sms4smile.com/quotes/author/ravyn-lenae/)

## More by James Grant

> [“Though the continued march of intellect and education have nearly obliterated from the mind of the Scots a belief in the marvelous, still a…](https://sms4smile.com/quotes/james-grant/though-the-continued-march-of-intellect-and-education-have-nearly/)

[James Grant](https://sms4smile.com/quotes/author/james-grant/)

> [It is an axiom nowadays that no bank fails for lack of capital; unprofitable lending is always the underlying cause.](https://sms4smile.com/quotes/james-grant/it-is-an-axiom-nowadays-that-no-bank-fails-for-lack-of-capital/)

[James Grant](https://sms4smile.com/quotes/author/james-grant/)

> [The 1980s are to debt what the 1960s were to sex. The 1960s left a hangover. So will the 1980s.](https://sms4smile.com/quotes/james-grant/the-1980s-are-to-debt-what-the-1960s-were-to-sex-the-1960s-left-a/)

[James Grant](https://sms4smile.com/quotes/author/james-grant/)

> [Debt is always repaid, either by the borrower or by the lender.](https://sms4smile.com/quotes/james-grant/debt-is-always-repaid-either-by-the-borrower-or-by-the-lender/)

[James Grant](https://sms4smile.com/quotes/author/james-grant/)

> [The Fed can change how things look, not how things are](https://sms4smile.com/quotes/james-grant/the-fed-can-change-how-things-look-not-how-things-are/)

[James Grant](https://sms4smile.com/quotes/author/james-grant/)

> [Progress is cumulative in science and engineering, but cyclical in finance.](https://sms4smile.com/quotes/james-grant/progress-is-cumulative-in-science-and-engineering-but-cyclical-in/)

[James Grant](https://sms4smile.com/quotes/author/james-grant/)

> [It's about bums on seats. If nobody wants to listen to what you are doing, it kind of defeats the purpose really, doesn't it?](https://sms4smile.com/quotes/james-grant/it-s-about-bums-on-seats-if-nobody-wants-to-listen-to-what-you-are/)

[James Grant](https://sms4smile.com/quotes/author/james-grant/)

> [The art of banking is always to balance the risk of a run with the reward of a profit. The tantalizing factor in the…](https://sms4smile.com/quotes/james-grant/the-art-of-banking-is-always-to-balance-the-risk-of-a-run-with-the/)

[James Grant](https://sms4smile.com/quotes/author/james-grant/)

> [In general, markets know more than the people who write about them.](https://sms4smile.com/quotes/james-grant/in-general-markets-know-more-than-the-people-who-write-about-them/)

[James Grant](https://sms4smile.com/quotes/author/james-grant/)

> [In almost every walk of life, people buy more at lower prices; in the stock market they seem to buy more at higher prices.](https://sms4smile.com/quotes/james-grant/in-almost-every-walk-of-life-people-buy-more-at-lower-prices-in-the/)

[James Grant](https://sms4smile.com/quotes/author/james-grant/)

> [To suppose that the value of a common stock is determined purely by a corporation's earnings discounted by the relevant interest rates and adjusted…](https://sms4smile.com/quotes/james-grant/to-suppose-that-the-value-of-a-common-stock-is-determined-purely-by-a/)

[James Grant](https://sms4smile.com/quotes/author/james-grant/)

> [Credit is money of the mind.](https://sms4smile.com/quotes/james-grant/credit-is-money-of-the-mind/)

[James Grant](https://sms4smile.com/quotes/author/james-grant/)

> [I believe that there is an important kernel of truth in the idea that financial errors recur every other generation.](https://sms4smile.com/quotes/james-grant/i-believe-that-there-is-an-important-kernel-of-truth-in-the-idea-that/)

[James Grant](https://sms4smile.com/quotes/author/james-grant/)

> [To me the gold price takes the form of a very uncomplicated formula, and all you have to do is divide one by 'n.'…](https://sms4smile.com/quotes/james-grant/to-me-the-gold-price-takes-the-form-of-a-very-uncomplicated-formula/)

[James Grant](https://sms4smile.com/quotes/author/james-grant/)

> [Every debt is ultimately paid, if not by the debtor, then eventually by the creditor.](https://sms4smile.com/quotes/james-grant/every-debt-is-ultimately-paid-if-not-by-the-debtor-then-eventually-by/)

[James Grant](https://sms4smile.com/quotes/author/james-grant/)

[Explore all 21 James Grant quotes ](https://sms4smile.com/quotes/author/james-grant/)

## More Banking quotes

> [If I could wave a magic wand, I'd break up the banking system.](https://sms4smile.com/quotes/kenneth-c-griffin/if-i-could-wave-a-magic-wand-i-d-break-up-the-banking-system/)

[Kenneth C. Griffin](https://sms4smile.com/quotes/author/kenneth-c-griffin/)

> [Historically, usury was defined as any interest whatever on an unproductive loan.Our whole banking system I have ever abhorred, I continue to abhor, and…](https://sms4smile.com/quotes/john-adams/historically-usury-was-defined-as-any-interest-whatever-on-an/)

[John Adams](https://sms4smile.com/quotes/author/john-adams/)

> [I am alive. Up here with the song of the engine and the air whispering on my face as the sunlight and shadows play…](https://sms4smile.com/quotes/stephen-coonts/i-am-alive-up-here-with-the-song-of-the-engine-and-the-air-whispering/)

[Stephen Coonts](https://sms4smile.com/quotes/author/stephen-coonts/)

> [It's not that I have any general aversion to technology but online banking just seems to be asking for trouble. You can have enough…](https://sms4smile.com/quotes/david-essex/it-s-not-that-i-have-any-general-aversion-to-technology-but-online/)

[David Essex](https://sms4smile.com/quotes/author/david-essex/)

> [When a government is dependent upon bankers for money, they and not the leaders of the government control the situation](https://sms4smile.com/quotes/napoleon-bonaparte/when-a-government-is-dependent-upon-bankers-for-money-they-and-not/)

[Napoleon Bonaparte](https://sms4smile.com/quotes/author/napoleon-bonaparte/)

> [“Suckers think that you cure greed with money, addiction with substances, expert problems with experts, banking with bankers, economics with economists, and debt crises…](https://sms4smile.com/quotes/nassim-nicholas-taleb/suckers-think-that-you-cure-greed-with-money-addiction-with/)

[Nassim Nicholas Taleb](https://sms4smile.com/quotes/author/nassim-nicholas-taleb/)

> [My father was in real estate, banking, and land management. As family life, it was very conventional, happy, and comfortable. We weren't wealthy, but…](https://sms4smile.com/quotes/julia-child/my-father-was-in-real-estate-banking-and-land-management-as-family/)

[Julia Child](https://sms4smile.com/quotes/author/julia-child/)

> [I only know one thing: Everything I learned about the banking business, I learned in the banking towers of the Societe.](https://sms4smile.com/quotes/jerome-kerviel/i-only-know-one-thing-everything-i-learned-about-the-banking-business/)

[Jerome Kerviel](https://sms4smile.com/quotes/author/jerome-kerviel/)

> [I have nothing against investment banking, but it's like massaging money rather than creating money.](https://sms4smile.com/quotes/michio-kaku/i-have-nothing-against-investment-banking-but-it-s-like-massaging/)

[Michio Kaku](https://sms4smile.com/quotes/author/michio-kaku/)

> [If you've taken Econ 101, you know that the quantity of money rises only when the banking system makes a net loan.](https://sms4smile.com/quotes/kenneth-fisher/if-you-ve-taken-econ-101-you-know-that-the-quantity-of-money-rises/)

[Kenneth Fisher](https://sms4smile.com/quotes/author/kenneth-fisher/)

> [I want the best people, not just on the banking side but on innovation and technology.](https://sms4smile.com/quotes/ana-patricia-botin/i-want-the-best-people-not-just-on-the-banking-side-but-on-innovation/)

[Ana Patricia Botin](https://sms4smile.com/quotes/author/ana-patricia-botin/)

> [“Intellectually and compassionately explaining the reason freedom works is required for credibility.”](https://sms4smile.com/quotes/ron-paul/intellectually-and-compassionately-explaining-the-reason-freedom/)

[Ron Paul](https://sms4smile.com/quotes/author/ron-paul/)

> [With post offices and postal workers already on the ground, USPS could partner with banks to make a critical difference for millions of Americans…](https://sms4smile.com/quotes/elizabeth-warren/with-post-offices-and-postal-workers-already-on-the-ground-usps-could/)

[Elizabeth Warren](https://sms4smile.com/quotes/author/elizabeth-warren/)

> [A banking system is an act of faith: it survives only for as long as people believe it will.](https://sms4smile.com/quotes/michael-lewis/a-banking-system-is-an-act-of-faith-it-survives-only-for-as-long-as/)

[Michael Lewis](https://sms4smile.com/quotes/author/michael-lewis/)

> [For my own part, I did not see and did not appreciate what the risks were with securitization, the credit ratings agencies, the shadow…](https://sms4smile.com/quotes/janet-yellen/for-my-own-part-i-did-not-see-and-did-not-appreciate-what-the-risks/)

[Janet Yellen](https://sms4smile.com/quotes/author/janet-yellen/)

[Browse all 571 Banking quotes ](https://sms4smile.com/quotes/about/banking/)

```json
{
    "@context": "https://schema.org",
    "@graph": [
        {
            "@type": "Quotation",
            "text": "Growth at an exceptional rate is a red flag in banking. It is hard enough to manage an ordinary bank; to control a sprouting weed is well-nigh impossible. If loans are expanding too quickly, the lending officers have probably been saying 'yes' too frequently.",
            "creator": {
                "@type": "Person",
                "name": "James Grant"
            },
            "isPartOf": {
                "@id": "https://sms4smile.com/quotes/#website"
            },
            "url": "https://sms4smile.com/quotes/james-grant/growth-at-an-exceptional-rate-is-a-red-flag-in-banking-it-is-hard/",
            "about": {
                "@type": "Thing",
                "name": "Banking"
            },
            "@id": "https://sms4smile.com/quotes/james-grant/growth-at-an-exceptional-rate-is-a-red-flag-in-banking-it-is-hard/#quotation",
            "image": {
                "@type": "ImageObject",
                "@id": "https://sms4smile.com/quotes/i/1e2/james-grant-26489_banking_growth-at-an-exceptional-rate-is-a-red-f_2125985.png",
                "contentUrl": "https://sms4smile.com/quotes/i/1e2/james-grant-26489_banking_growth-at-an-exceptional-rate-is-a-red-f_2125985.png",
                "url": "https://sms4smile.com/quotes/i/1e2/james-grant-26489_banking_growth-at-an-exceptional-rate-is-a-red-f_2125985.png",
                "width": 1080,
                "height": 1080,
                "caption": "“Growth at an exceptional rate is a red flag in banking. It is hard enough to manage an ordinary bank; to…” — James Grant",
                "creditText": "SMS4Smile Quotes",
                "creator": {
                    "@id": "https://sms4smile.com/quotes/#organization"
                }
            }
        },
        {
            "@type": "BreadcrumbList",
            "itemListElement": [
                {
                    "@type": "ListItem",
                    "position": 1,
                    "name": "Home",
                    "item": "https://sms4smile.com/"
                },
                {
                    "@type": "ListItem",
                    "position": 2,
                    "name": "Quotes",
                    "item": "https://sms4smile.com/quotes/"
                },
                {
                    "@type": "ListItem",
                    "position": 3,
                    "name": "James Grant",
                    "item": "https://sms4smile.com/quotes/author/james-grant/"
                },
                {
                    "@type": "ListItem",
                    "position": 4,
                    "name": "Growth at an exceptional rate is...",
                    "item": "https://sms4smile.com/quotes/james-grant/growth-at-an-exceptional-rate-is-a-red-flag-in-banking-it-is-hard/"
                }
            ],
            "@id": "https://sms4smile.com/quotes/james-grant/growth-at-an-exceptional-rate-is-a-red-flag-in-banking-it-is-hard/#breadcrumb"
        },
        {
            "@type": "WebSite",
            "@id": "https://sms4smile.com/quotes/#website",
            "name": "SMS4Smile Quotes",
            "url": "https://sms4smile.com/quotes/",
            "publisher": {
                "@id": "https://sms4smile.com/quotes/#organization"
            }
        },
        {
            "@type": "Organization",
            "@id": "https://sms4smile.com/quotes/#organization",
            "name": "SMS4Smile Quotes",
            "url": "https://sms4smile.com/quotes/",
            "logo": {
                "@type": "ImageObject",
                "url": "https://sms4smile.com/quotes/wp-content/themes/sq/assets/icons/icon-512.png",
                "width": 512,
                "height": 512
            }
        }
    ]
}
```
