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Napanee, Ontario | you are talking about community banks... i'm talking about the large commericals, you know, the ones that do the vast majority of the lending in North America. Maybe in your area, it is primarily a mix of small community and indipendnet banks to Farmers. Here, one Institution does about 50% of the business (FCC) and a mix of two to three other banks do most of the remaining 50%. In Canada , there are about 5 banks that handle about 85-90% of all the business (not just farming) in this country. granted, you are righ, they are well positioned and have sufficent capital reserves, likely a lot better than 10%.
And specifically, i never claimed that all banks are operating at 10% or lower on their reserve ratio. Nor did i specify any differnece between teir one, two or teir three capital in the deposit base - was trying to keep it simple.. but alas, it's turning into a lot more complex discussion though now LOL.
In any event, there were indeed many banks that DID operate well below 10% and even 5% reserve ratios. Yes they may not have been small independent banks...they were primarily the large commericals, which is actually the scary part. Maybe i should have split hairs and not lumped all banks into the same camp - i'm sorry for that, and do recognize that many are run a lot more conservatively than the sheisters at the helm of those institutions ran theirs. The probablem is that the responsible ones don;t account for much of the market.
However, we are getting pertty far off topic here - the orignal intent of this post was to show that banks should keep the lending and the market advisory services separte, and not have them as dependtant variables. From the perspective provided by KRM, it seems that some in the industry are in tune with that, and do respect the farmers capacity to run his business as he see's fit.
Edited by OldMcdonald 7/30/2014 11:23
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Bankers and cattle prices
