Banking
Goes Back to Its
The lending landscape has changed dramatically
over the past few years and employers wanting to grow
or invest in their companies face new financing hurdles.
How has the banking industry changed — and what
does that mean for Washington businesses?
S
by Kelly Kearsley
urveying the state’s banking industry after three
years of economic tumult is like looking at a
forest after a fire: Amid the damage, there are
some signs of rebirth and growth.
Seventeen banks in Washington have failed since
2009, courtesy of the weak economy and heavy investment in commercial real estate. More banks are likely
to fail this year, though the pace seems to have slowed.
On a national level, the industry has garnered considerable public ire — from protestors occupying Wall
Street to anger over debit card fees — as fallout of the
last recession continues and the specter of a new one
shadows the country’s economy.
At the state level, there are still encouraging signs
for an industry whose health is intricately linked with
business growth. A few banks in the state have made
dramatic comebacks, raising capital and returning
to profitability. Others have seized the opportunity to grow, purchasing failing banks to increase
their footprints.
And banks from outside the state have opened
branches here, citing Washington and the Puget
Sound as an area ripe for investment.
“Compared to many places in the country, Washington is well-positioned,” said Scott Jarvis, director
of the state’s Department of Financial Institutions.