Financial Impact of Baltimore Riots on Banks - What You Need to Know to Protect Your Business

BALTIMORE - May 1, 2015 - PRLog -- The riots continue to have a broad effect on the local economy and business owners are waiting to learn if insurance will help mitigate expenses.  Those that decide not to rebuild, may have outstanding loans that they cannot repay.  Surrounding landlords may also be affected by displaced tenants and lose revenue which may have been earmarked for loan payments.  This potential loss of revenue for financial institutions could have a significant impact on their earnings.  If the losses are great enough, the FDIC will step in and arrange for a stronger institution to assume responsibility for the loans and deposits.  The assuming institution has no obligation to honor previous loan or line of credit agreements; the usual results are lower limits and more stringent conditions.

According to Michael Heller, President of VERIBANC, "There are over 70 banks and credit unions in Baltimore, some of which may start feeling the signs of impact around the end of the 2nd quarter (June 30th), but will most likely know the extent of their troubles by the end of the 3rd and 4th quarters of 2015."

Business owners can protect their loans, lines of credit, and cash flow by making sure that they bank with a financial institution that is able to withstand the impact of current events.  Top-notch banks and credit unions are conservatively managed, and have a large capital cushion to protect themselves against unforeseen circumstances.

As a service to all those affected by recent events, VERIBANC is offering 50% off of The Blue Ribbon Report and The Banker's Dozen Report.  The Blue Ribbon Report is a list of twenty-five of VERIBANC's safest Baltimore banks that have planned for the unexpected.  The Banker's Dozen report can be customized to create a list of twelve of VERIBANC's Green with 3 Stars rated banks and/or credit unions. Please visit https://www.veribanc.com/OrderRpts/OrderReports.php and use the code: BALT at the checkout.

About VERIBANC, Inc: VERIBANC was established in 1981 and has a Rating’s Effectiveness of over 99%.  During its first year of operation, VERIBANC coined the Blue Ribbon Bank™ commendation of excellence - the country’s oldest and most prestigious form of national recognition by any independent analysis firm for financial safety and soundness.  In addition, VERIBANC has been the only rating agency whose assessments were used as the principal underwriting basis for issuing excess FDIC deposit insurance policies during 1993-2000.

VERIBANC has always remained 100% transparent since it’s inception by disclosing its rating model, track record, and no conflict of interest policy. It has stood by its policy and has never accepted payment from a bank to rate it.  Most importantly, it has been a key resource in helping depositors find a safe bank during some of histories most devastating banking crises, such as the mid 1980s, early 1990s, and 2000s crises.  Visit us at http://www.veribanc.com/