New York, NY – Seven new banks started in the last two years, and 10 more are in formation. In contrast, not a single new bank opened from 2001 through 2004.
Call it a marriage of money and talent. More high-ranking bank executives are available to run banks because of a wave of mergers in recent years. And given the booming economy and outlook, investors are eager to provide backing.
“I have never seen the New York City market this active in my entire career,” says Ed Lutz, president and chief executive of Lutz Advisors Inc., who has been a bank consultant or regulator for nearly 40 years.
Shaya Boymelgreen, founder of Boymelgreen Developers, started LibertyPointe Bank. Its branch in Manhattan opened in November 2005 and already has $170 million in deposits, largely from the Orthodox Jewish community. The success of the bank, which is adding two branches in Brooklyn this year, is inspiring others to think about starting banks.
“Banks with a unique ethnic appeal or special understanding of an industry have a better chance of success,” says Ivan Serchuk, a banking attorney with Todtman Nachamie Spizz & Johns, as was reported here on Vos Iz Neias. “People are intrigued when they see a bank start out like that,” Mr. Serchuk says. [Crain’s]