Consequences of a bank failure

Consequences of a bank failure
I noted last week that credit unions generally have local senior management and decision makers and that this may be a benefit to a small business owner. Let me explain what I mean.

On Friday, Venture Bank of Lacey, Washington failed and was acquired by a bank that is headquartered in North Carolina. How will a bank that is more or less 3,000 miles away understand the local Lacey market?

I don’t have any idea how it will.

What happens when a problem develops late in Washington and everyone has gone home in North Carolina? I wouldn’t want to be the small business owner who has to ask for help at a time like that.

Full and Fair Disclosure: There are many large credit unions that have multi-state operations. I have worked at one but at least our decision makers where usually in the office until 8:30 PM eastern time. Most credit unions, even very large ones, tend to be local. I am eligible to join, two, billion dollar plus credit unions; both have their head offices no more than six miles from my home and both offer business services.


Be well and stay happy.