A recent online post denouncing the banking industry proclaimed, “Even Jesus hated bankers.” It’s true Jesus may have “expelled the moneychangers from the Temple.” But I believe that was more a reference to those who profit off religion than those who profit from banking. Still, someone proclaiming, “Jesus hated bankers” should serve as a warning that “Banking” is quickly gaining ground on “Big Tobacco,” and sadly “Big Energy,” as the most despised industries in the nation.
The media, government regulators, politicians and even the public take constant swipes at the banking industry as if it was the latest political Piñata.
Some of the criticism is well deserved, but not all. The financial meltdown and the role big banks played in the subprime mortgage crisis kicked off the intense negative perceptions about bankers. Unfortunately, as far as public perception goes, our local and regional banks were mistakenly lumped into the pile.
Today, most Americans are unaware that it’s the “community banks” that are responsible for fueling our economic recovery. These small banks provide capital to local businesses looking to grow and expand.
The most liberating day of my professional life was the day Texas Brand Bank approved my loan to buy my auto care business, Kwik Kar of Irving. Funding my small business allowed me to leave the corporate world of local TV news behind. I set out on a path to control my own destiny. When a bank lends money to an entrepreneur, it helps make dreams come true. I challenge people to find another industry that can have such a positive and dramatic impact on a person’s life, and a community’s economic success.
In the four and half years since I left TV news, I consulted for two relatively small commercial banks here in North Texas. Working with these banks allowed me to see, first hand, how the business banking industry positively contributes to our community’s economic recovery and growth.
Every day, smaller community and regional banks, lend money to entrepreneurs. The smile on a business owner’s face is always the same whether the loan was for one million dollars or 35-million dollars. Sadly, in most cases, the employees have no idea how instrumental the loan is to the success of the business. The capital infusion provided by the banks is the only way for the business owner to grow and create jobs.
Overzealous, and sometimes reckless, “investment banks” caused the entire industry to fall under attack. It is a disservice to community banks to lump them together with large “investment banks”. Community banks don’t have “trading desks” and they don’t take risky positions or bet on the markets. They make loans to business owners and entrepreneurs with a proven track record of success.
Yet the negative perception of the industry has politicians putting the ENTIRE banking industry in their cross hairs. In their effort to reign in “Investment banks” they are stifling community banks too.
When you limit a bank’s ability to loan money, the economy ultimately suffers. Most local and regional banks fully embrace common sense regulations, yet I am imploring Congress not to over regulate community banks simply to make headlines.
Requiring small business banks to follow the same regulations as large investment banks is ridiculous. It stifles a small banks ability to conduct business as well as its ability to lend money to qualified entrepreneurs in our community.
This is why I am calling for a full repeal of all regulations imposed as a result of Dodd-Frank. Congress must start from scratch with a common sense approach to banking, realizing one size DOES NOT fit all. Beyond the repeal of Dodd-Frank, I ask the public to applaud community banks for investing in their own community. When a local bank grows, so does the local economy.
Putting our trust in capitalism and entrepreneurship will spur the economy and job creation. So before you start cussing out your local banker, keep this in mind, when a bank finances a business, it finances the lives of every employee working there. As a nation, we need to embrace the banking industry not condemn it. Remember, Jesus loves everyone, EVEN bankers.
You can listen to more of my commentary on The Stinchfield Report, Monday through Friday 3-7PM on 570 KLIF.
