The Research Design Associates Blog

(healthy bank)

My bank went bust

Much to my chagrin I found out that MY small local bank failed last Friday. was interested in a bank serving the local community and accountable to it in preference to multinational investors. I’m a bit stuck on real estate loans backed by land and not multiply sold paper. I remain troubled by the creation of the image of wealth or security in the absence of that value during the housing bubble. No I’m not harking back to the gold standard. We do need new financial vehicles. However I want my checking account, credit card and debit card fees to reflect the cost of those transaction, not to be building a pool of money to drive risky Wall Street commoditized investments.

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11.13.2011

Credit Unions - Meeting Members' Needs

Credit Unions offer real banking alternatives. Notable is its strong support for business accounts, a hard-to-find service in many other credit unions. Business deposit accounts and lending are supplemented by merchant card services for credit and debit card transactions and Automated Clearing House (ACH) electronic transfers – services usually associated with fee-charging commercial banks. Funding comes from member accounts - $1. per month per deposit account provides a $25 million source for community college and university scholarships, grants to state museums and the national guard, as well as an innovative teacher housing project.

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10.17.2011

Your Loan – Lost in the “Global Cash Flow”

The concept is a borrower’s “Global Cash Flow”. The best way to understand your Global Cash Flow analysis is to picture an onion. TO get around this bloomin’ onion, most borrowers are creating containment circles around the borrowing entity to limit the never ending search for a problem. Assuming the borrower can repay the loan with adequate cash flow to spare, most companies have started looking at their corporate structure to head off any problems at the pass.

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6.1.2011

I’m OK, but is the bank I want to borrow money from OK?

Should I be borrowing from my bank? Are they solvent? How can I know what shape my bank is in? When is it time to abandoned my bank? Who can I trust? Texas Rations and Tier One Capital Ratios are available. Investigate your bank to assure they are as worthy of your business as you have to demonstrate you are of their money.

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1.22.2011

I Need A Loan

What do I need to do to get a loan and what bank can I trust? Looking for a new bank is a lot like the “dating” game and the ”vetting” process is often long, awkward and may involve several/many banks. You need to find a good personality match as your banker is your “salesman” who takes your case. Start where you are already known, preferably where you have an existing banking relationship, provided it is a “healthy” bank .

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10.24.2010