The Norman Transcript

Optimism among state bankers

03/10/07

Transcipt Editorial

Despite Wall Street rattlings and a lower-than-expected state revenue stream, the Oklahoma economy remains strong. That's the word from a survey of Oklahoma bankers released this past week.

SoonerPoll.com released the findings of its query of 500 Oklahoma bank managers. It found them optimistic about the state's economy and their local markets.

Bankers believe commercial loan demand will exceed residential demand. They also believe short-term interest rates will go down, then back up before remaining flat for the next six months.

The model they work from assumes the Federal Reserve will drop interest rates in the second half of 2007 to release some inflationary pressure. That means banks will have to work harder for a customer's business.

The bankers did send a message about the proliferation of casinos. They blame gambling for a one to 10 percent increase in insufficient checks and past due loans. They also singled out pay-day loan companies, with rural banks finding the most problems with such lenders.

Overall, the poll finds bankers predicting a strong state and local economy over the next few months. Surprisingly, most said their local communities were in better shape than the state.

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