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Show 'Little Guy' Makes Up Majority of Financing Just who are Utah's bank customers when it comes to providing the majority of Utah's consumer financing? It is, without question, the little guy. A recent survey of member banks by the Utah Bankers Association turned up some interesting figures along this line. With nearly 20 percent of the member bank.-responding to the survey, the figures show 8,694 commercial loans, and of that number nearly 75 percent 6,363 were for under $10,000. By comparison, 187 loans just under two percent of the total were made for $100,000 or more. The banks represented in the sampling included a cross section of Utah's banks, from small farm community branches, to metropolitan offices. The results, proportionately, were about the same regardless of bank location. The survey showed the reporting banks made 1 ,382 commercial loans in the $10,000 to 25,000 range; 549 loans for $25,000 to $50,000 and 213 loans for $50,000 to $100,000. In each case the reporting banks showed the majority of the loan transactions were aimed for the borrower who needed under $10,000. In addition, the records of the banks responding to the survey showed they had $53,661,099 in home loans, and $4,580,326 in home improvement loans on the books. These figures would bear out the finding of the Utah Consumer Credit Report, prepared by the University of Utah College of Business for the governor and the Utah Legislature. The report, issued in late 1876, shows that for the last year studied Utah banks extended almost one-half of all consumer credit in Utah The five years studied showed the banks increasing their percentage of the consumer loan market from 48 9 percent to 49.9 percent At the same time the study showed that industrial loan companies and supervised lenders combined to provide 13 1 percent of the consumer financing, while savings and loan institutions provided 2.1 percent Credit unions accounted for the remainder. The figures show that when average consumers are in need of credit, the bank is where they go. |
