At a CDFI Coalition meeting earlier this week in Washington D.C., the topic was liquidity, which is a fancy word for “where’s the money.” Seems like we have once again applied a “one size fits all” solution. Big banks, mid banks, and community banks have been put in the same bucket with the same applied solution. One community bank CEO reported his board voted to give the money back because of the ownerous nature of the requirments.
Also, CDFIs, a key player in local credit availability, have not yet been factored in to the equation. It is my opinion that the solution to our economic malstrom will come from the bottom up not the top down. Small business & small banks
There does seem to be a silver lining as Chairman Frank (Financial Institution Committee) starts hearings this week on stimulous funding for small business and consumers. Watch this one.
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Liquidity (ie where’s the money?)
written on March 5th, 2009 | by James R. Klein
At a CDFI Coalition meeting earlier this week in Washington D.C., the topic was liquidity, which is a fancy word for “where’s the money.” Seems like we have once again applied a “one size fits all” solution. Big banks, mid banks, and community banks have been put in the same bucket with the same applied solution. One community bank CEO reported his board voted to give the money back because of the ownerous nature of the requirments.
Also, CDFIs, a key player in local credit availability, have not yet been factored in to the equation. It is my opinion that the solution to our economic malstrom will come from the bottom up not the top down. Small business & small banks
There does seem to be a silver lining as Chairman Frank (Financial Institution Committee) starts hearings this week on stimulous funding for small business and consumers. Watch this one.
Tags: CDFI, CDFI Coalition, Community Development Entities, Community Development Finance Institution, Congress, Financial Services Committee, Liquidity, Rep. Barney Frank, US House of Representatives
This entry was posted on Thursday, March 5th, 2009 at 5:23 pm and is filed under CDFI, Commentary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.