Strong results from smaller Community Banks could confirm a turnaround in the credit quality and loan demand and signal a true turnaround in the overall economy
Community Banks projected to sharply increase C&I lending in 2011 Results of a recent survey by SageWorks found that 58% of Community Banks expect to sharply increase Commercial & Industrial (C&I) loans in 2011 as compared to 2010. This is another sign that Bankers are regaining optimism about the economic turnaround in the local regions where they are based. This is great news for Small & Medium sized businesses (SMBs) as they may now have new options to grow their businesses, and potentially increase their staff levels. The news is likewise, is very good for the depositors. It is reasonable to believe that as lending increases, Banks will need additional liquidity (eg. deposits) to support that liquidity, which in turn should drive rates on deposit accounts (eg. savings accounts, CDs, Money Market accounts) higher.