April, 29, 2010

With so much negative commentary about the banking industry, it's easy to miss the fact that over 325 traditional, FDIC-insured banks and their more than 14,000 employees are serving towns and cities across the state, committed to helping their communities thrive.Lending typically declines in recessions. Yes, there are individuals and businesses that have not been able to obtain a loan. That may be because their cash flow or collateral positions have changed.

Or because bank examiners are looking more closely at every loan — especially ones involving real estate — which is what happens in every economic downturn. Bankers are accustomed to close scrutiny. They expect examiners to analyze their operations based on standard banking principles, the most basic of which boils down to one question: "If I lend you this money, will you pay it back?"Traditional bankers get paid when people repay their loans.