Notes from the CEO
California Banking and Recovery
Recently, there was some good news released regarding California banks and their effect on the state’s economy. Authored by economists Chris Thornberg and Jordan Levine of Beacon Economics, the study behind the 2012 California Banking & Economic Update found that, in 2011, increased lending by California-based banks did much to help move the state’s economy in the right direction. The authors state that California’s economic recovery is outpacing the national recovery and that is due in part to California-based banks’ expanded lending during that year. According to the study, lending is up 8 percent from the all-time low in 2010. While eight percent might not sound like a very large gain, there are 240 banks that are based in California, and eight percent across 240 lending institutions adds up to quite a boost in dollars made available to businesses last year.
This is news all California bankers can be proud of. We at Five Star Bank are especially proud because much of that increased lending came from community banks. Local institutions lending to people is at the core of a community bank’s role. I like to think the role of a community bank also includes a kind of community stewardship, that it’s our role to do right by those we share a community with. I believe we do that quite well here at Five Star Bank. I look forward to the day when reports like these are still good news but less surprising.
Read the full report here.
James E. Beckwith
President & CEO Five Star Bank