This article from Lexington’s Herald-Leader talks about how most Kentucky-based lending institutions have steered clear of the riskier, sub-prime market as Kentucky Banks choose the safer path by holding solid assets heading into the future. This while the largest banks went after these kinds of loans and are paying the price.
“Generally, the large, major regionals have taken on more (subprime) risk … and the problems with those risks are now coming home to roost, said Richard DeKaser, chief economist for National City.
Three of our largest, regional banks are now taking steps to bring in more liquidity in their assets. This while most of our smaller banks are holding firm.
That’s one reason a state that ranks 26th in population had the 11th most profitable banks in the nation in the second quarter of 2008, up from 16th in the first quarter, said Don Mullineaux, banking professor at the University of Kentucky. Kentucky also ranks near the top in bank profits in the Southeast.
Sounds like the positive news for those seeking new loans here in Louisville.
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