Why have Texas institutions weathered the storm better than banks in other regions?
Texas-based financial institutions have been able to post better results, so far and in general, compared with bankers in other states for several key reasons, none of which directly correlate to each other on the one hand, but all of which are part of our “culture” here. (This comment addresses local institutions lending locally.) First, Texas still has plenty of experienced individuals in banking who experienced the 1980s, when it seemed as if Texas was the epicenter of real estate problems in the United States. These people and their experience have been great protectors of Texas’ business and real estate values and, by result, Texas’ citizens. These bankers have seen the problems once and do not want to repeat them. Second, Texas’ geographic location and generally business-friendly atmosphere have been building for many decades. We have great weather, no income taxes, great medical and secondary education facilities and a strong economic base in the state that have always made us a
