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  • How the Fed's Rate Cut Could Hurt America's Small Banks  [View article]
    Workers in community banks have seen margin compression, earnings contraction and deteriorating customer loyalty because of the trends identified in this article.

    The only positive for community banks, in my opinion, is the flexibility and underwriting skill of the lending staffs. Instead of relying on formulas and rigid guidelines for making loan decisions, community banks have the ability to tailor lending solutions to customers' needs.

    The upshot? Community banks will survive, but earnings will continue to be pressured. The better capitalized banks will successfully weather this storm, and continue to pick up market share from large banks that exit certain sectors because of higher 'perceived risk.'
    Dec 29 14:29 pm |Rating: +1 0
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