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Article: Profit in passbook? Not yet; Fierce competition in a glutted market is making it rough for a wave of new banks to get a foothold.(Finance)(banking industry)
- Article from:
- Crain's Chicago Business
- Article date:
- June 21, 2004
CopyrightCOPYRIGHT 2004 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: H. LEE MURPHY
It's easier to launch a bank than to make money at it.
The 2003 Chicago-area bank performance rankings compiled for Crain's by Schaumburg-based Plansmith Corp. finds that 14 banks-or 6% of the total-lost money last year, while dozens more posted subpar profits.
The bottom of the list is dominated by banks chartered since the late 1990s. Many have struggled in a market weighed down by recession and competition from Bank One Corp., Washington Mutual Inc. and others-mega-banks that are on course to add more than 200 new branches to the Chicago area by 2006.
Profits, in the meantime, are in a vise. Of the 229 ...