Banking Failures Affecting Markets & Consumers

A couple of banking failures earlier this spring made national headlines and brought jitters to the markets and to consumers. Al Liestman, President and CEO of Center National Bank in Litchfield, Plymouth and Chaska, says everything is safe and the local bank is doing well.

Liestman says the banks that failed this spring were affected by poor decision-making regarding investments and lending practices, and there could be more failures, but not likely in Minnesota. He says Center Bank has an outstanding owner, the bank is well-capitalized, liquidity is up, and the employees are very involved in the community.

Liestman says Federal Reserve officials have raised interest rates 10 times in the past year as a way to try to curb inflation as the rising interest rates discourage people from building, buying and borrowing money which should drive down prices, and so far inflation has dropped in the past year from 9% to 4%, but they probably should have started raising rates a couple years earlier instead of having so many increases all in one year. He says there could be a small recession, but the future looks bright. Center National Bank in Litchfield is getting ready for its annual brat feed on July 6th.