| Summit targets small-business owners
A free informational session on business financing for small-businesses owners will be held in Honolulu Dec. 5. Hawaii-based mortgage banking company Meridian Financial Network is sponsoring its first Small Business Summit, which it plans to hold annually. The company, a U.S. Small Business Administration-approved lending institution, said the half-day session will help familiarize small-business owners with both in-house and government loan programs, including SBA loan programs. The SBA offers loan programs to help small businesses obtain financing when they might not be eligible for conventional bank loans because of a lack of financial history. Speakers at the session will include Andrew Poepoe, director of the SBA's Hawaii District office; Jim Tollefson, president and CEO of the Chamber of Commerce of Hawaii; and Keith Ogata, director of S.C.O.R.E.
BGH launches surprise offer
Bangkok Dusit Medical Services (BGH), the country's biggest hospital operator, yesterday launched a surprise takeover offer for Ramkhamhaeng Hospital (RAM) at 480 baht per share. BGH president Wallop Adhikomprapa said the listed health-care group expected to spend about 4.8 billion baht if the tender offer succeeds. Financing would mostly come from bank loans, with a small portion from internal cashflow. According to Mr Wallop, BGH believes that full ownership of RAM would enable the group to expand its customer base beyond well-heeled local patients and foreign medical tourists. BGH operates Bangkok Hospital, Samitivej and BNH hospitals. ''Potential growth in the second-tier market (middle-income earners) is still untapped compared with the first-tier segment where private hospitals are gearing up to penetrate.
Banks back in business, loan growth gains pace
Shaking off the sluggish growth in October, lending by banks gathered pace during the last fortnight, especially on the back of retail loans. According to data unveiled by the Reserve Bank of India (RBI), loans extended by banks to corporates, individuals and other businesses rose by Rs 37,447 crore during the fortnight ended November 2009, taking the outstanding non-food credit figures to Rs 20,27,459 crore.
Interestingly, even food credit, essentially loan for food procurement by the Food Corporation of India (FCI), rose by close to Rs 850 crore during the fortnight. Total bank loans rose by Rs 38,301 crore to Rs 20,64,180 crore. In contrast, loans growth in October was almost flat.
But it may be too premature to conclude that there is a strong revival in credit growth.
Wachovia exec acknowledges bad timing on Golden West purchase
CHARLOTTE -- Wachovia's general bank president on Wednesday highlighted the positives of last year's acquisition of Golden West Financial but acknowledged "our timing was not good" in light of a severe housing downturn. "We continue to feel that this acquisition will prove itself very positive when we get to the other side of the cycle," Ben Jenkins told an audience at the Merrill Lynch banking conference in New York. In his presentation, Jenkins noted that Golden West's branches are helping the Charlotte bank reach a goal of adding 1 million net new checking accounts this year. He also said the bank expects to gain market share in the mortgage business. Wachovia has previously said that it expects to set aside more money than expected in the fourth quarter to protect against problem loans in a weakening housing market.
Who's listening to the shareholder?
Imagine being a shareholder of a community bank. A typical investor is interested in owning a bank that will better the community in which he or she lives as well as increase personal wealth. A significant shareholder is directly affected by the bank's performance and may take an active role in the bank's management and direction. As a member of the board, you are concerned about building market share, operations and managerial efficiency, as well as stock price, among other things. Capturing nearly half of the deposits in the county puts the bank in a top-performing category. You take pride in the bank's stellar reputation. As the bank grows, so does the local economy. The bank's give-and-take through loans and deposits drives the surrounding community, providing employment in the area among other things.
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