Quote:
Originally Posted by buildmybudget
Point well taken Disney, however it's the increased regulations and expenses that accompany these regulations and requirements(ie: prepaid fdic insurance) that are bogging down community banks and credit unions. I'm merely saying that the majority of the write-offs are from larger banks, not community banks who have maintained sound lending practices.
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Right, plus the big boys have plenty of reserves to float this kind of pre-payment (especially those with government subsidies), but smaller and local banks are going to be much harder hit. FDIC premiums are a big expense for banks--they pay $0.05-0.50 per $100 deposit they receive over the course of a year. That can add up to hundreds of thousands of dollars, even for smaller banks. They may be having trouble footing that bill, let alone paying triple for a year.