Truth is--lending is UP, not down. Look at the stats.

Congrats to VCBI management for standing behind their bank by infusing some cash at a time when VCBI can capture share from hand-wringing big bank competitors.

Article at the link below is a must-read for those holding shares in small banks.

det

EXCERPTS
“In August, bank loans to consumers were 9.5% higher than they were a year earlier--the fastest increase since 2004. The year-to-year increase in consumer and industrial loans was 15.5%, down only slightly from a recent record high of 21.6% in March. Real estate loans were up 4.1% for the 12-month period ending this August--flat lately, but not down.

“Did bank lending suddenly turn south since August? The latest data is for the week ending Sept.17, when the U.S. expropriated 80% of AIG equity and thus tanked most financial stocks. U.S. bank credit hit a record of over $7 trillion in the latest week--up from $6.57 trillion a year earlier and $6.92 trillion at the end of July.

“Contrary to many comments, consumer and industrial loans actually increased in the latest week. =====Troubled giant banks have cut back on lending, but smaller banks have picked up the slack.====== Consumer and real estate loans dipped insignificantly through Sept. 17, remaining much higher than they were a year earlier.

“… Everyone knows that U.S. banks have virtually stopped lending, deeply slashing their loans to U.S. consumers and firms. As is so often the case, however, what everyone knows is probably not true.”

FULL ARTICLE -
http://www.forbes.com/opinions/2008/10/0...