Bank High Ranking Good & Bad For Honolulu Real Estate

January 12th, 2010 categories: Mortgages & Financing, The Market

According to an article in the Honolulu Advertiser, Forbes Magazine recently ranked Bank of Hawaii as “the nations top performing bank”.

“The Forbes ranking is based on eight financial performance measures, which include: return on average equity, net interest margin, nonperforming loans as a percentage of loans, non-performing assets as a percentage of assets, reserves as a percentage of nonperforming loans, two capital ratios and leverage ratio.” CLICK HERE TO READ THE HONOLULU ADVERTISER ARTICLE

This is a blessing and a curse for the Honolulu real estate market. It is a blessing because a weak Bank of Hawaii would not be good for our economy of the mental psyche of our community. It is a curse because as the article states, “Bank of Hawaii earned the honor by sticking to a conservative policy on loans…” which means that it may be difficult to get a loan at one of Hawaii’s biggest lenders. Evidence that financing is key to selling a property can be found in the vacant land market. There are very few lenders if any that will make loans on vacant land and, thus, our vacant land market is slow. Portions of our market that are moving have readily available financing.

If I were running the Bank of Hawaii I would consider loosening lending guidelines to gain market share and good will. So those of you with Mr. Landon’s ear (Bankoh’s main man)…pass on my message.

SEARCH FOR YOUR HONOLULU HOME

If you would like to discuss your real estate needs, feel free to call me at 808-737-2093 or toll free at 877-737-2093. You can email me at keahi@lava.net.

This entry was posted on Tuesday, January 12th, 2010 at 6:00 am and is filed under Mortgages & Financing, The Market. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.