23 News banking expert Bill Roop says until our local jobless rate improves and consumers start spending; chances are we won’t see a recovery in the banking industry. Roop adds most institutions haven’t loosened their clamp on lending, hindering our ability to get credit. But most of us don’t want to borrow, and banks have few qualified customers. Banks are in business to lend money, which is vital to our economic growth, but Roop thinks the lack of spending and little lending means no major turnaround just yet.
A recent study shows 67% of mortgage holders have less than 15% equity in their homes, and that number is falling with our home prices. Consumer spending accounts for 70% of our economic activity.