Another year of bank migration?

October 16, 2009
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More than a year has passed since the financial crisis prompted many Hoosier businesses to start looking for new bank relationships, and one observer thinks the trend will last for at least another year.

Steve Beck, a longtime Indianapolis banker before jumping into other pursuits, says businesses continue to worry about instability in the banking system, particularly if the banks are tied to institutions that accepted federal TARP money.

So the companies, many with a history of working with only one bank, are looking for a second in order to spread their risk, much like a manufacturer would diversify steel suppliers—just in case.

“It’s going to last awhile,” Beck says. “The business community isn’t sure what the rules of the game are. They aren’t sure the banks know what the rules of the game are.”

After a career spanning Huntington, Old National and other banks, Beck now manages Indiana, Kentucky and Ohio territories for Chicago-based Geneva Capital Group. The investment bank funds commercial real estate development and syndicates the loans to Midwestern banks.

In his discussions with bank executives, Beck finds the movement to diversify bank relationships benefiting mostly smaller banks. Small-bank officials tell Beck they’re so swamped with requests that they’re turning some away.

The businesses believe they will have an easier time developing a personal relationship with lenders in small banks. Sometimes that’s true and sometimes not, he adds, but the businesses seem convinced of it.

Incidentally, the migration stands to cost big and regional banks lots of customers. Many small banks are capable of handling upward of $7 million to $8 million in loans per business—plenty to support the vast majority of companies.

What do you think? Are you seeing the same trend?
 

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  1. I had read earlier this spring that Noodles & Co was going to open in the Fishers Marketplace (which is SR 37 and 131st St, not 141st St, just FYI). Any word on that? Also, do you happen to know what is being built in Carmel at Pennsylvania and Old Meridian? May just be an office building but I'm not sure.

  2. I'm sorry, but you are flat out wrong. There are few tracks in the world with the history of IMS and probably NO OTHER as widely known and recognized. I don't care what you think about the stat of Indy Car racing, these are pretty hard things to dispute.

  3. Also wondering if there is an update on the Brockway Pub-Danny Boy restaurant/taproom that was planned for the village as well?

  4. Why does the majority get to trample on the rights of the minority? You do realize that banning gay marriage does not rid the world of gay people, right? They are still going to be around and they are still going to continue to exist. The best way to get it all out of the spotlight? LEGALIZE IT! If gay marriage is legal, they will get to stop trying to push for it and you will get to stop seeing it all over the news. Why do Christians get to decide what is moral?? Why do you get to push your religion on others? How would legalizing gay marriage expose their lifestyle to your children? By the way, their lifestyle is going to continue whether gay marriage is legalized or not. It's been legal in Canada for quite a while now and they seem to be doing just fine. What about actual rules handed down by God? What about not working on Sundays? What about obeying your parents? What about adultery? These are in the 10 Commandments, the most important of God's rules. Yet they are all perfectly legal. What about divorce? Only God is allowed to dissolve a marriage so why don't you work hard to get divorce banned? Why do you get to pick and choose the parts of the Bible you care about?

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