The 10-Point: My Guide to the Day's Top News. - btbirkett@gmail.com - Gmail
Don’t Bank on It
What does it take to flourish in the tough new post-financial crisis regulatory environment? Perhaps a drive-through window that can accommodate a horse and buggy. We report that Bank of Bird-in-Hand is the only new bank to have opened in the U.S. since 2010, when the Dodd-Frank law was passed. Based in rural Pennsylvania, it caters mainly to the local Amish community. It doesn’t offer online banking, but it is pony friendly. There is widespread concern about the paucity of new banks because smaller institutions make the majority of farm and small-business loans, federal data show. Bankers say the dearth is a sign that new regulations are increasing expenses and discouraging potential startups from even trying, while regulators say the profit squeeze from rock-bottom interest rates is a bigger problem. For reference, an average of more than 100 new banks a year opened in the three decades before Dodd-Frank.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment