Banks are Slower to Recover Because of Real Estate Dependence

by jgarrison - Posted In: Banking & Financial Services, Gunster, Real Estate

A recent article by Wayne Tompkins in the Daily Business Review states that ‘South Florida’s dependence on real estate is keeping both its banks and its economy bogged down even as the banking industry nationwide is showing measurable signs of recovery.’  In the article, several sources point to reliance on real estate, both commercial and residential, as one of the challenges banks will face on the path to recovery.  As Florida continues to be a growing state and a destination, there will be a need for new residential and commercial development.  Additionally, Florida banks face a decrease in net assets, reserves and a reduced number of banking institutions which only makes the recovery more difficult.

Greg Bader, Gunster attorney and chair of its banking practice, commented that job growth and economic stability will be difficult to support without banks growing stronger.  Bader points out that Florida’s ability to attract out of state residents and some time will ultimately restore balance to the banking and real estate industries.

Read more about the challenges banks face on the path to recovery in the full article.
Daily Bus. Review: Real Estate Dependence has Florida Banks Lagging

Tags: Gregory K. Bader