In the coming year, it will be more important for every possible good-faith effort between commercial lenders and their mortgagees, to extend performing loans and avoid making calls that trigger domino effects throughout our local economy. That’s essential, but it’s not enough. There is simply not enough money for loans to act as a stimulus to economic activity.
We do know, however, the State of North Carolina has billions of dollars in State pension funds and other funds. What if these funds were made available through banks that serve all of North Carolina? They could be put to work for economic development purposes such as commercial, residential and industrial development.
The mechanism is already in place—no new bureaucracy required! Loans could be given at the equivalent rate as federal funds. And since banks touch all of the local economies in every region throughout the state, this would help jump start the economy in local communities throughout the state. AND the pension funds would be secure because the banks would operate under the same state banking agency and rules as they do today.