SC BANKERS ASSOCIATION


 
September 18, 2012 —  Fred Green introduced the club to the SC Bankers Association (SCBA), its mission, advocacy endeavors, training, and other issues the trade association is working on in the state.  He stated that the association represents over 80 institutions in South Carolina and that all but a handful of the banks in our state are members of SCBA.

 
The main item discussed by Mr. Green was a summary of the affects of the economic downturn and status of banks in the improving economy, both from a national and state-wide perspective.  Nationally, as the economy has been on the upswing, banks are increasingly seeing less turmoil and their holdings are improving.  Most large banking institutions have had positive growth in 2012 and while not back to pre-recession levels, many are seeing profits.  Statewide institution’s health, for the most part, mirror those of the large national banks.  In SC, the SCBA is seeing banks with significantly less “risky” holdings and are lending is improving as a result.

 
Mr. Green stated that banks in SC are historically tied closely to the communities they are in.  Where you see a successful community, you typically see successful banks.  Banks in our state are historically very active in supporting community causes. With the improving economy, we will see banks continuing to be active in their community, both from an underwriting and participatory perspective.  The SCBA represents all types of banks, both large national banks and small, one branch banks.  He is glad to report many are in good financial health.  While bank closures are still happening nationally and in SC, the SCBA is seeing a much less tumultuous environment in the banking industry.  Much of this, according to Mr. Green, is a direct result of their liquidating risky loans.

 
Questions from our membership included an inquiry on the status of foreclosures and if they will remain “on books” until the Presidential election, and why banks do not offer lower interest “pay day” type loans.  Mr. Green stated that he did not think banks were “holding” foreclosures until after the election, but agreed that the foreclosure issue remains a concern.  He also stated that pay-day loans are extremely risky and that he does not see banks getting into this market.  Most banks don’t want to take on ownership of automobile titles, etc
 
Submitted by Steve Coe, Keyway Committee