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Banking system, after a brush with the unthinkable, over the last few months,
is starting to see the light at the end of the proverbial tunnel. The real impact
of the catastrophe which befell the financial markets during the last year is
still hard to fathom let alone measure.
Between 2000 and 2007, 84% of banks ($300m to $1b in assets) maintained loss reserves
in excess of non-performing loans. By the end of 2008, that percentage dropped to
43%. We believe that during this financial crisis a significant number of banks
will lose their independence and some will go out of business.
It may be of interest to note that the word "catastrophe" in Greek has two
meanings - one is disaster and the other one is opportunity! The current catastrophe
will present opportunities.
For 20 years KAA has been assisting community banks in taking advantage of
opportunities and avoiding threats. We have a specific methodology in place for
assessing the opportunities and threats that may be facing community and regional
bank in this "catastrophe."
Please contact us at 610-691-3272 if you would like to hear more about KAA and see
if we can be of assistance to your bank during this once in a generation
"catastrophe."
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