Vermont bankers say the financial meltdown on Wall Street is having a minimal impact on lending practices in Vermont.
Officials say sound management protected state-chartered financial institutions from the subprime problems.
But officials are watching to see whether the collapse of some of the world’s largest investment firms will lead to a deficiency of capital available in Vermont.
Banks need capital to pay for home purchases, construction and commercial ventures.
Economist Thomas Kavet says that capital is the "lifeblood" of Vermont’s economy.
State Treasurer Jeb Spaulding says the financial turmoil could decrease the flow of capital in the private sector, which could have a slowing effect on the state’s economy.