Banker Optimism On The Rise
Jun 24, 2010
According to an article in the Denver Business Journal today, we are seeing an uptick in Banker confidence. In a recent bank executive survey covering a 12 state region (including Colorado) conducted by Grant Thornton, respondents indicated more optimism related to U.S. economic growth than they had 6 months earlier.
· Thirty-four percent of bankers in the region said that they expected the U.S. economy to improve in the next six months, up from 14 percent six months ago.
· Fifty percent said that they expected their local economy to improve over the next six months, up from 19 percent in December 2009. On this question, they were more optimistic about their local economy than bankers in other regions in the country, including those in the Northeast (43 percent), the Southeast (29 percent), the Midwest (27 percent) and the West (25 percent).
· Twenty-nine percent of central-region bankers said that their bank would hire more people in the next six months, down from 32 percent in December 2009.
Grant Thornton’s national 17th Bank Executive Survey was published on June 18, but the regional data breakdown was reported Wednesday. Grant Thornton and Bank Director Magazine conducted the national survey of bank CEOs and CFOs from May 4 to May 24, 2010, with 230 respondents. Of those, 38 were from what the survey calls the central region, including Arkansas, Colorado, Kansas, Louisiana, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Dakota, Texas and Wyoming. (Compiled by Renee McGaw)
With bank optimism on the rise, there seems to be a slight improvement in the lending marketplace. It’s becoming more commonplace to hear bank advertising noting that “we are lending”. Mind you, the lending is cautious and it’s more critical than ever that a company’s financial statements be in order. The owner will still need to provide a guaranty and will need to be able to illustrate their ability to service the debt. The fact that small businesses may find it possible to secure working capital to accelerate their growth though is fantastic news and worth celebrating.
As private business owners continue to see small improvements to their revenue and growth prospects for 2010, these businesses will continue to urge the recovery forward through job creation, innovation, and good old American entrepreneurism.