Snapshots from the Vault
The new shape of the Florida banking industry is emerging. All sectors aren't being created equal.
"SunTrust is, and will continue
to be, in the business of making loans to creditworthy borrowers."
— Thomas G. Kuntz
Indeed, research by the Federal Reserve Bank of New York and the National Federation of Independent Business, among others, indicates the bigger problem for most businesses is a lack of sales. But credit is an issue. Lenders that businesses dealt with in the past are struggling still and may not be lending. Regulatory and market pressures have raised underwriting standards.
Bank, Thrift and Credit Union Jobs
» As of July, the most recent month available, the sector posted its seventh consecutive month of job losses compared to the same month in 2010.
In September, Florida's credit union industry kicked off an image-building campaign. Credit unions want to move more into banks' lending turf, pushing for federal legislation allowing credit unions to increase the percentage of assets they can put into business loans to 27.5% from the current 12.25%. They also want to be able to take deposits from county, city and school governments. The financial meltdown impacted more than the banking industry. Eastern Financial Florida in Miramar collapsed in 2009 and was merged into Space Coast Credit Union, costing the credit union insurance fund $40 million.