Borrowing and Saving Your Money Locally
Supporting your local independent businesses means more than just where you spend your money. You also have options about where you keep and manage your money – community credit unions and banks!
At community banks and credit unions, your money is more likely to stay local, more likely to be re-invested in your community. You are also more likely to have a long-term relationship with the people at the bank. There are a growing number of people making the move to small banks and credit unions for these reasons and more.
In Stacy Mitchel’s article Banks and Small Business Lending, she states “Although small and mid-sized banks control only 22 percent of bank assets, they account for 54 percent of all small business lending. Meanwhile, the largest 20 banks, which command 57 percent of bank assets, devote only 18 percent of their commercial loan portfolios to small business.” Her article examines why small banks lend more to small businesses, how banking consolidation has harmed local entrepreneurs, and what can be done to get credit flowing in a recession. Read the complete article here .
Business Lending compared to Bank Assets
At the Move Your Money web site you will find information about the importance of local banking, and even a checklist of steps to follow to go about making the change to a local bank.
The New Rules Project has launched a Community Banking Initiative , which is building the case for a smaller-scale and more locally rooted financial system. They will be posting reports, articles, and policy models. Check it out here.
National Public Radio recently did two stories on local banking: Making the Move To Community Banks and More Americans Considering Community Banks.
Wondering about borrowing locally? Check this out for information about Moving Your Borrowing Along With Your Money.
Now, what are you waiting for?
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