Tag Archive for 'banking industry'

Economic recovery and the banking industry

One of the most significant shifts that resulted from the current economic gyrations is in the banking industry. Of course, we’ve all witnessed the consolidation of the national banks. Perhaps you’ve even paid attention as some of the 2nd tier banks have either failed, been absorbed by a bigger fish, or in some way had to make major adjustments in their business model.. In the words of the Borg, “Size is irrelevant; resistance is futile; all will be assimilated.”

One of the pieces of advice I’ve given small business owners for over 11 years now is to make sure at least one of your banking relationships is with an independent community bank (a/k/a locally owned and operated). If you’ve followed this advice and have maintained a good working relationship with that bank, your small business probably can borrow what it needs to get through this rough spot. So far, the independent banks – which did not put sub-prime mortgages on their books and aren’t lined up for government bailout money – have seen very little change in the way they do business with their small business customers.

Regardless, every small business owner should become more attuned to adjustments in the national banking environment, especially over the next couple of years. There will be changes, at a minimum with regard to regulations, at all levels of the banking industry.

Today I interview on my radio program bank economist from National City and Brain Trust member, Richard DeKaser. We discussed the banking landscape and of course, the economy. Richard always has thoughtful and valuable insights that are worth listening to, which you can do by clicking the link following this paragraph. But first, remember what I’ve always told you: An uninformed banker is a scared banker, and no one ever got anything out of a scared banker. So take your banker to lunch this week.

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