For Minnesota banks, a painfully slow recovery


Minnesota bankers may see their glass as half full or half empty. But it's filling up so slowly that many may have a parched feeling in the ledger.

The Federal Reserve Bank of Minneapolis released its latest survey Tuesday. MPR's coverage focused on the fact that local banks are gradually getting out from under bad loans and are seeing their profits improve.

Finance & Commerce, meanwhile, pointed out that not only bad loans but loans in general are on the wane, and have been for nearly four years. So while retrenching has allowed bankers to stop the bleeding, their customary source of profits has also dwindled to a relative trickle.

In its own summary of its Minnesota findings, the Fed wrote that banking conditions continue to gain strength ... but improvement was often small.

Here's a Fed exec's overview of the Ninth District survey, which includes five states and part of a sixth:

Next Up


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.

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.

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.