While some of the nation’s biggest banks are reporting huge losses, the financial environment for small New Hampshire banks has been quite favorable lately.
Assistant professor Brian Bolton teaches finance at the University of New Hampshire. He says retail banks are getting a really good deal at the Federal Home Loan Bank, which they turn to for overnight loans they can then use to lend money to consumers. He says federal rates aren’t likely to go up given the recession.
New Hampshire’s banking department has been reassuring depositors and home owners that the state’s banks are well capitalized and can survive in a slumping economy.