Business 2013 Look Ahead: Bank consolidation will pick up considerably, OBA official says
By LAURIE WINSLOW World Staff Writer on Jan 6, 2013, at 2:24 AM Updated on 1/06/13 at 4:09 AM
Finance
Porat’s own bank almost vanished when hedge funds, spooked by difficulties getting money out of bankrupt Lehman Brothers, pulled more than $128 billion in two weeks from Morgan Stanley.
When it comes to catastrophes and disasters, anniversaries typically bring up bad memories.
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Bank consolidations could become more prevalent in 2013, as particularly smaller banks will look for ways to cope with rules and regulations coming out of Washington.
That is the observation of Roger Beverage, president and CEO of the Oklahoma Bankers Association, who expects the pace of consolidation to pick up considerably in the coming years.
The banking industry remains strong, and consolidation isn't a sign of weakness in the industry but rather regulatory overkill, he said. Smaller banks don't have the resources or staff to keep up with the daily onslaught.
Oklahoma has 235 bank charters with about 1,600 locations, and Beverage said those numbers could decline as much as 10 percent going forward, depending on how rapidly rules and regulations are released.
He noted that of those 235 bank charters, 110 are smaller banks with assets less than $100 million.
"Some of the smaller banks, although they are very well run, will have a difficult time keeping up with the same rules and regulations that apply to the nation's largest banks," he said. "As a result of that pressure, they will look for partners."
Beverage said he suspects that branching activity will slow down next year. The physical presence of a branch is not as necessary today as it was five to 10 years ago, he said.
Original Print Headline: Head of OBA: Consolidation will pick up considerably in '13
Finance
Porat’s own bank almost vanished when hedge funds, spooked by difficulties getting money out of bankrupt Lehman Brothers, pulled more than $128 billion in two weeks from Morgan Stanley.
When it comes to catastrophes and disasters, anniversaries typically bring up bad memories.
CONTACT THE REPORTER
918-581-8466
Email
