How Crucial is Local Banking in Kentucky?
Kentucky is just like any other state in the union. Sure, it is from a specific geographic area in the continental United States. Sure it has its own fairly unique or regionalized economic activities. But by enlarge, when it comes to local banking and the need for such financial services, Kentucky is not really all that different.
Make no mistake about it. We can make the universal and unqualified claim that local banking is crucial to any economy. We’re not just talking about Kentucky or the great American Southeast seaboard. We’re talking about America as a whole.
In fact, we can take it a step further. We believe that local banking is absolutely necessary for the whole world. How can we be so bold and make this claim? Well, think about it. There is no shortage of business ideas. Regardless of whether you live in Kentucky, California, Nevada or Nepal and all points in between, there are many entrepreneurs with stars in their eyes and big dreams of making a tremendous amount of money.
For those dreams to happen, they would have to provide value to other people. This value may take the form of services that people need. This value might take the form of merchandise the people want. Whatever the case may be, real wealth building can only be achieved through a voluntary exchange of value for value. In other words, people will trade money for the value they need.
Maybe somebody needs a haircut, they would trade money for that. Maybe somebody needs kids coloring books, they will trade money for that. Their money, on the other hand, is what somebody else gave them for the value of their labor, time, attention and energy. It’s all about value for value and this is the heart and soul of local banking.
When we fund the dreams of local entrepreneurs, we trigger a local chain reaction of job creation, business building and entrepreneurial activity. Local banking is crucial to any kind of development and if you do a study of economies that are not doing well, I’m not just talking about American states here, I’m talking about whole countries located either in this hemisphere on the other side of the planet, part of the reason why there’s not enough economic development and people are not as well off as they should be is due to local financing.
Due to regulations, local customs or traditions and other structural barriers, the funds don’t get out there. The funds don’t go to where they need to go. They definitely don’t go to funding local entrepreneur’s hopes and dreams. These differed or even denied dreams have a very practical negative effect on the local area. There are less jobs, less economic activity and less value created.
Make no mistake. Local banking is crucial to jumpstarting that self-replicating wave of value creation.