Federal Reserve says Minnesota banks slowly getting stronger

The Federal Reserve Bank of Minneapolis says the health of Minnesota's banks is gradually improving as the industry recovers from the recession. A Fed official says profits are still not great but they're moving in the right direction. A new report on the year's second quarter also shows the number of bad loans is shrinking.
Author:
Publish date:

Minnesota banks are not exactly raking in profits yet but they're getting there. The Federal Reserve says in the second quarter profits were up slightly and the number of bad loans was down a little. The amount of money loaned by the state's banks was up compared to last year's second quarter, which had not happened in a few years.

Here's the Minneapolis Fed's overview of Minnesota banking conditions, with links to the other five states it serves. On the national level, those who read the Fed's tea leaves think more stimulus may be on the horizon given the sluggishness of the recovery.

Next Up

Related

FDIC shutters another Minnesota bank

Maple Grove-based InterBank was among four banks in three states closed by federal regulators Friday. Great Southern Bank based in Missouri will taken over InterBanks's four branches in the Twin Cities metro starting Monday. The FDIC has now closed 21 failed U.S. banks this year.

Banks coming back home in apartment boom

Twin Cities banks are cashing in on the surge of multifamily construction, jostling to do business again with real estate developers, the Star Tribune reports. It's a sharp twist from the post-crash years when toxic concentrations of commercial real estate loans brought down so many small community banks and larger banks all but pulled out of construction and development lending.

Somalis protest by closing bank accounts

A group of Twin Cities Somalis are frustrated with banks no longer willing to transfer money to Somalia. In response, Somali-American customers are removing their money and closing bank accounts. They want banks to restore the wire service to Africa. Banks fear the money transfers could violate anti-terror regulations.

Minnesota Somalis threaten to pull money from banks

Hundreds of Somalis gathered in Minneapolis Saturday urging lawmakers and banks to find a resolution so they can continue to send money to loved ones in East Africa countries. Some banks have stopped the service with concerns the money is going to help terrorist organizations. As many as 500 Somali Minnesotans have threatened to close their accounts without a solution.