Small Banks Boom While Some Local Firms Bust
While big banks are collapsing with a resounding thud on a daily basis, smaller banks say they're actually profiting from their big friends' problems.
Deposits are flowing in as customers flee riskier investments, and well-qualified borrowers are lining up for loans, reported Binyamin Appelbaum in Thursday's Business section of The Washington Post.
"We collect money from local savers, and we lend it in the local community," said William Dunkelberg, chairman of Liberty Bell Bank in Cherry Hill, N.J. "We're doing fine. There are 9,000 financial institutions out there, and most of them are small and most of them are doing fine."
Dunkelberg, a professor of economics at Temple University and chief economist for the National Federation of Independent Business, added that a recent survey of that group's members found that only 2 percent said getting a bank loan was the great challenge facing their businesses.
But while smaller banks are seeing bigger business, local store owners in D.C. say that the national financial meltdown is constraining their revenues and limiting their loan options, reported V. Dion Haynes in Monday's paper. The owner of Washington Business Group, a contracting firm that manages construction projects for federal agencies, said although his firm has grown over the last nine years, he recently has had to lay off some employees and put the brakes on new contracts.
Small Business Readers: How is the national financial meltdown affecting you and is your business suffering or profiting?
By Sharon McLoone |
September 26, 2008; 2:51 PM ET
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