Minnesota's small banks are gaining strength

  • Article by: JENNIFER BJORHUS , Star Tribune
  • Updated: May 29, 2012 - 9:54 AM

They're the most profitable in years, a first-quarter report shows. Still, overall loans declined.

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bagalamukhiMay. 25, 12 6:19 AM

Strength some cash money in my bank account now.

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EbuddyMay. 25, 12 7:09 AM

Eventually however, some of these banks may be crushed by the cost of compliance with new, onerous regulatory rules.

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franknjackMay. 25, 12 7:59 AM

Note the word "qualified" when they are talking about the lack of customers. I work with several small businesses that use their credit cards instead of working with these banks because the banks are unwilling to work with them. As for "new onerous regulations," Ebuddy, you're kidding, right? With the number of small banks that have gone belly up in the last few years, you're suggesting that they are over-regulated?

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thatisright1May. 25, 12 9:40 AM

""I work with several small businesses that use their credit cards instead of working with these banks because the banks are unwilling to work with them."" franknjack, you do realize that in many of these cases the banks CAN'T work with the small business owners because of new and more onerous regulations? I have near-perfect credit and a positive net worth near 500k, but it was almost impossible for me to secure a 400k loan to expand my business because one or two minuscule components of my application did not meet some regulatory requirement. I went through 20+ lenders before I was finally able to secure a loan and, to do so, I had to provide a massive load of paperwork. This process was cumbersome and absorbed WEEKS of my time! I think it would be best to stomach the downfall of a few overzealous/scandalous bankers than to have overreaching regulations that if/how the majority of banks can lend money. This is killing our economy right now!

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EbuddyMay. 25, 12 1:25 PM

franknjack - "Ebuddy, you're kidding, right? With the number of small banks that have gone belly up in the last few years, you're suggesting that they are over-regulated?" I am suggesting that regulation is only going to get worse and the cost burden to ensure compliance will prove to be too much for a number of community financial institutions. While it may be true that larger banks will face increased initial scruntity, they also have the mass to absorb the additional costs. Smaller banks won't be so lucky.

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swatisedMay. 25, 12 2:42 PM

Banks being crushed by onerous regulations is a canard - since all peer banks are subject to the same regulations - they are all affected by that "tide" and thus competitiveness is where it always was. Qualification of those requesting a loan .. is the issue. that is a subjective evaluation. While regulations dictate certain requirements - it is also true that if a bank isn't sure it wants YOU as a customer (and it doesn't really need you) than any excsue will do for rejection. After what they've been through - the old axiom is more true than ever.... the only people banks will loan to are those that don't need the money.

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