What We Can Control

Our own actions are what we can control. What we can do individually and collectively to help Louisiana community banking grow and prosper.

I recently read a speech given in 1966 titled "Will Small Banks Survive?" given by George Mitchell, a member of the Board of Governors of the Federal Reserve System. The speech cites many of the concerns we hear today, including this:

"We are now witnessing another banking transformation brought on by a new banking ideology, a largely unforeseen technological revolution in credit and settlement accounting and a large and steady flow of savings from a prosperous economy. In this latest maelstrom of change there is apprehension in some quarters about the survival of the small or moderate-sized community bank."

To address the implied question, we know community banking will survive. Probably fewer of them, but neither the business model or the good people working today in community banking are going away. The trends the speech addresses, like technology innovations, demographics, challenges in rural areas, lack of economies of scale competitors have, among others, remain. These factors, or secular trends, are largely not in our control. At the time the speech was given there were nearly 14,000 banks, today less than 6,000. At the LBA we are focused on what we can do collectively to promote, strengthen and advocate for Louisiana banking to assure it can grow and prosper. That focus is through you the banker in the many ways this is addressed. It’s advocacy with policy makers in telling your story, but also bankers making sure we here understand the challenges you face and in keeping us on point in our work. That only happens through our interaction with you in all the ways that are available through LBA programs and events or through phone calls and emails.

We depend on bankers to keep us focused and acting together on things we can impact. Let’s do that this year and keep the positive momentum going.