Western Independent Banker - January/February 2009 - (Page 28)

By Anne K. Scully, WIB Service Corporation President WIB Service Corporation Report Recycling Cash: Keep Your Local Economy Vibrant with Intrasweep’s On-Balance-Sheet Sweep Program WE’RE IN THE middle of the financial perfect storm: an economy in recession, further credit tightening, increasing jobless rates, government bailouts, Wall Street bankruptcies, falling 401Ks, massive home foreclosures, and evil financial instruments with nasty sounding acronyms such as SIVs, CDOs and ARS. Now, here’s the good news: It’s also the best time and opportunity for community banks to reestablish their presence and role as the economic driver of their community, and in the process deepen relationships with their clients and acquire more core deposits. Although the world economy has become more interconnected and interdependent, the local economy is still a bellwether for the larger American economy. When the health of the local bank is robust, it is able to loan capital to start new businesses, which creates jobs and enable residents to buy homes. Everyone has a part in keeping local dollars in the community. As a leader in the community, banks can increase bank deposits and create stronger relationships with their customers, all the while creating a vibrant local economy. There are two ways to generate a robust, sustainable local economy: through outside capital infusions or by increasing economic linkages in the community between community banks, businesses, labor and public entities. Th is, in turn, increases the “multiplier effect,” in that the longer money circulates within an economy the greater impact it has. Community banks are the linchpin of community fi nance recycling: When local businesses and residents put deposits into a community bank, the bank has more capital to lend out to new and current businesses and residents. The overall effect enlarges the local economy, creating more jobs and a larger tax base for communities to improve infrastructure and school districts. WIB-endorsed VIPs • ATM Network and Driving/ Debit Card Processing • Bank Operations Profitability Consulting • Board Portal • Check Overdraft Privilege • Check Printing • Commercial Equipment Leasing • Competitive Market Intelligence • Credit Risk Management and Stress Testing • Insurance for Community Banks • Insured Deposits/Funding for Community Banks • Internet and Network Security Services • Loan Portfolio Tracking/ Insurance for Lenders and Customers • On-Balance-Sheet Sweep Accounts • Online Account Opening Platform • Online Branch & E-Marketing • Remote Deposit Capture Scanner Purchase Program • Reward Checking • Surcharge-free ATM Network WIB-endorsed Intrasweep’s On-Balance-Sheet Sweep program offers community banks a key tool to improve their balance sheets, increase profitability and become strategic cash management advisers to their customers. 28 www.wib.org Western Independent Banker http://www.wib.org http://www.wib.org

Table of Contents Feed for the Digital Edition of Western Independent Banker - January/February 2009

Western Independent Banker - January/February 2009 Contents A Message from the President & CEO Managin Liquidity and Funding During a Recession Staying Liquid in a Time of Regulatory Sea Change Managing Liquidity in a Volatile Rate Environment Regulatory Outlook for Brokered Deposits Deposit Growth and Branch Network Effectiveness Turbo Charging Account Acquisitions FDIC-Insured Sweep Accounts Creating a Contingency Funding Plan WIB Service Corporation Report WIB Calendar New Members Index of Advertisers advertiser.com

Western Independent Banker - January/February 2009

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