SIOUX FALLS, SD (KELO.com) — It’s the best economic outlook regional bankers have had in the past year. Still, there’s concern about what lies ahead. Creighton University’s monthly survey of bankers in a 10-state region shows their customers are withdrawing funds–probably to stay below the FDIC insurance limit of $250-thousand because of bank failures in other parts of the country. Economics Professor Ernie Goss says the withdrawals have been significant.
Most of the bankers in the survey say they expect insolvency challenges to continue for larger regional banks. Goss says most Community Banks are in good position to weather those challenges.
The survey also showed the farm economy is getting softer, and regional bankers have a slightly negative opinion on the agricultural outlook. That’s a big change from just a month ago.
At the same time, Goss says rural main street businesses are doing a bit better.
