“Reciprocal Deposits Can Help Community Banks Save Small Business”

April 30, 2020

Author: Tom Nelson, Chief Investment Officer, Reich & Tang


Allotting space on their balance sheets allows banks to increase lending to small businesses at a time when they need it the most.

Even while a large percentage of the financial industry workforce is operating from home, banks can take actions to help maintain the vibrant communities they serve.

Community banks are looking to make available as much liquidity as possible to fund Small Business Administration (SBA) loans for businesses trying to get through the coronavirus pandemic. Banks need to look at their balance sheets and figure out ways to free up capital. That means reducing collateral and improving liquidity ratios. Click here to read Banking Dive article.