Why so many banks?

H

Heartstrings

Hi all,
I'm just a graphics designer and don't know much about economics. I live in a little town of less than 4k with a poverty rate of 27.7%. We have two small grocery stores, a walmart, two tiny strip malls.....and 8 banks. If a community seems to be as poor as Job's turkey, why so many banks?
thanks!
 
Quote from Heartstrings:

Hi all,
I'm just a graphics designer and don't know much about economics. I live in a little town of less than 4k with a poverty rate of 27.7%. We have two small grocery stores, a walmart, two tiny strip malls.....and 8 banks. If a community seems to be as poor as Job's turkey, why so many banks?
thanks!
More...

Assuming an average income of 45k per year x 3,000 people that are working, thats 135 million dollars running through their banks. If they keep an average daily deposit of 4.5k per person thats 13.5 million dollars of which they can loan 135 million dollars out. 135 million dollars x 5% interest they charge(although some loans will be higher like 16% but we will use 5% to keep it simple) and thats $6.75 million per year in income just from the loans.

So in your tiny town, each bank can make about 850k per year.
 
Quote from Heartstrings:

Hi all,
I'm just a graphics designer and don't know much about economics. I live in a little town of less than 4k with a poverty rate of 27.7%. We have two small grocery stores, a walmart, two tiny strip malls.....and 8 banks. If a community seems to be as poor as Job's turkey, why so many banks?
thanks!
More...

About your not knowing much about economics, don't harbor any inferiority complex. Though some have read (or have written) many books in economics, none know anything about economics. None here in ET, Wall St, Main St. or the university faculty know anything about what is happening in the economy and what will happen in the near or farther future. We are all equally in the dark.

As for why so many banks?

Remember Jesus threw out all the (too many) money changers and collectors making profits in the Temple.The answer is an era is ending and a new era with a new message for mankind has just appeared. Read the writings on the wall! :p :p :p
 
Quote from Onlygold:


Remember Jesus threw out all the (too many) money changers and collectors making profits in the Temple.The answer is an era is ending and a new era with a new message for mankind has just appeared. Read the writings on the wall! :p :p :p
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The writing on the wall read "Mene , Mene , Tekel , Parsin"

Mene can mean numbered or mina (a unit of money)

Tekel can mean weighed or shekel

Peres (the singular of Parsin) can mean divided or half a mina or half a shekel.

Daniel 5:26 "This is what these words mean:
Mene : God has numbered the days of your reign and brought it to an end.

Tekel : You have been weighed on the scales and found wanting.

Peres : Your kingdom is divided and given to the Medes and Persians
 
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