Texas banks: A reason for optimism
As the new year begins, the clouds of economic uncertainty for our nation remain. At press time, many economists are predicting recession in 2023. But in Texas, there is reason for optimism and bankers are a big reason for it.
Under the business-friendly leadership of Gov. Abbott and the Texas Legislature, the state has been a national leader in post-pandemic recovery. However, another key factor in Texas resilience is based in the strong relationships between our banks and their local business communities. Case-in-point, the $60 billion in PPP loans facilitated by Texas banks that literally saved nearly a million small businesses and even more jobs.
In December, these connections were again on full display when I had the opportunity to speak at the Greater Waco Chamber’s Economic Outlook Luncheon. The event featured valuable content and data. But beyond any number on a chart, the most important figure in the room that day was 300 — the number of business leaders in the room. Prominently among them were the region’s community bank leaders.
While they compete aggressively, Waco and Central Texas area bankers collaborate frequently to the benefit of the region. Chamber leaders report that their economic development pipeline could have an impact into the billions of dollars.
Similar relationships between banks and their business communities can be found in cities big and small across the state, from Nacogdoches to El Paso and the Rio Grande Valley to the Panhandle. The work of Texas banks is vital to supporting the state’s status as the ninth largest economy on the planet.
We must remain clear-eyed about economic headwinds. TBA will also continue to advocate in the halls of Congress and with regulators for common-sense policies that allow banks to serve their communities rather than the bureaucracy. We will continue to press against CFPB. And we will fight regulatory over-reach and new regimes that attempt to draw more resources away from lending.
Texas banks are prepared to help their customers through any challenges that 2023 may present. We stand ready to work with local businesses, chambers of commerce and elected officials to not only make our state more resilient, but to lead the nation.