Many Kentucky Banks Unharmed

Conservative business practices have protected most Kentucky banks from being damaged by the Wall Street financial crisis. That means they’re able and willing to extend credit to eligible customers.When high risk mortgages became more common nationwide, Kentucky banks generally avoided the trend. Kentucky Bankers Association General Counsel Debra Stamper says the current financial crisis caused by risky loans hasn’t changed the way banks do business in the Commonwealth.“As I understand it from talking to banks, they have not significantly tightened or changed their underwriting standards for loans, which means if you were a good credit risk for them two years ago, you’d be a good credit risk for them now and they’d be happy to make you a loan," she says.But Stamper says further fiscal downturns could hurt consumer confidence and, in the worst case, cause runs on banks.