At a time when many national banks are struggling through a serious crisis, Kansas banks are enjoying relatively good health, according to the state's banking commissioner.
J. Thomas Thull, who has spent two years as Kansas banking commissioner, said during a visit to Pittsburg on Wednesday that state-chartered banks, as a whole, are holding their own during the recession.
"I think things in Kansas are good," Thull said. "If you were using a scale that you would use for grades in school, we would be a good solid B."
Thull said that of the 249 state chartered banks, which now includes the Pittsburg-based University Bank, less than 15 percent have "challenges" that are being addressed by his office.
"So if that's 85 percent that are doing well," he said," that's pretty good."
However, because of the current economic times, Thull said those banks that are facing challenges need more help than they typically would under better circumstances.
"Our role has always been to examine and evaluate the state banks' performance," Thull said. "But now more than ever, we have the responsibility for any bank, especially those that may have challenges, to provide the direction and answer their questions so they can better address their issues and get to where they want to be performance-wise."
Thull said the federal government, particularly the Obama Administration, has taken some positive steps toward solving the national banking crisis. He said increased regulation is needed, but to an extent.
"I think the (government) is moving in the right direction," he said. "But I do think we need to be watchful and careful... to not overreact and over-regulate."
Thull said he also understands why many banks are becoming a little more stingy when it comes to lending. He said that is a "natural" reaction to the economic crisis.
"I don't think any regulator... has published an official edict that reads, 'Thou shall not loan,'" he said. "But when an industry experiences difficulties — (in this case, the banking industry) —it's a given that certain types of loans will be scrutinized.
"When there are challenges like that, it's only natural for boards of directors and bank managers to say, 'We're really not in the market to make loans of that type," Thull said.
Thull was in Pittsburg on Wednesday to deliver the state charter to University Bank, which recently switched from a nationally-chartered bank to a state-chartered institution. As part of the change, the bank dropped the word "National" from its name.
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At a time when many national banks are struggling through a serious crisis, Kansas banks are enjoying relatively good health, according to the state's banking commissioner.
J. Thomas Thull, who has spent two years as Kansas banking commissioner, said during a visit to Pittsburg on Wednesday that state-chartered banks, as a whole, are holding their own during the recession.
"I think things in Kansas are good," Thull said. "If you were using a scale that you would use for grades in school, we would be a good solid B."
Thull said that of the 249 state chartered banks, which now includes the Pittsburg-based University Bank, less than 15 percent have "challenges" that are being addressed by his office.
"So if that's 85 percent that are doing well," he said," that's pretty good."
However, because of the current economic times, Thull said those banks that are facing challenges need more help than they typically would under better circumstances.
"Our role has always been to examine and evaluate the state banks' performance," Thull said. "But now more than ever, we have the responsibility for any bank, especially those that may have challenges, to provide the direction and answer their questions so they can better address their issues and get to where they want to be performance-wise."
Thull said the federal government, particularly the Obama Administration, has taken some positive steps toward solving the national banking crisis. He said increased regulation is needed, but to an extent.
"I think the (government) is moving in the right direction," he said. "But I do think we need to be watchful and careful... to not overreact and over-regulate."
Thull said he also understands why many banks are becoming a little more stingy when it comes to lending. He said that is a "natural" reaction to the economic crisis.
"I don't think any regulator... has published an official edict that reads, 'Thou shall not loan,'" he said. "But when an industry experiences difficulties — (in this case, the banking industry) —it's a given that certain types of loans will be scrutinized.
"When there are challenges like that, it's only natural for boards of directors and bank managers to say, 'We're really not in the market to make loans of that type," Thull said.
Thull was in Pittsburg on Wednesday to deliver the state charter to University Bank, which recently switched from a nationally-chartered bank to a state-chartered institution. As part of the change, the bank dropped the word "National" from its name.
