C L asked in Business & FinanceCorporations · 8 years ago

How much do bank owners earn?

I have my BA in business, but thinking of getting my MA in finance.

I value my independence and hate the idea of punching a clock the rest of my life. I like the idea of opening up a small local community bank or a credit union.

How much do local bank owners earn?

How much do credit union owners earn?

Is it terribly difficult to set up either?

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  • 8 years ago
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    Opening up a small bank or credit union is a terrible idea. Small banks simply can't compete with larger banks. The only real value added by community banks is lending to businesses that are so small that the large banks won't bother with, and surprisingly there is not a lot of money in that. With the regulations being implemented by the government it is simply very difficult to be profitable. On top of that, why would a customer choose your small, unproven community bank over a larger bank that people know isn't going to go bust in a few years...? Most community banks shouldn't exist. They can't answer the simple question of "why do we exist". I've asked plenty of community bank owners this and the answer is always the same. They think they provide better service to the customers, and maybe they once did, but now there is a basic level of service that is expected and going above that doesn't provide much reward. So.... if you can come up with a reasonable answer to why your community bank exists then you will be terribly successful, and if you can't you will fail.

    As far as salary, my father owns a community bank and gets anywhere from between $150k-$300k depending on the year and the bank's profitability (the last few years have been on the lower end of that spectrum and will probably continue to be for awhile). Credit unions are coops, and not for profit so.... I'd guess owning one isn't as lucrative as owning a community bank (which doesn't pay well at all for the hassle). And to answer your last question, very easy to set up, very difficult to be successful. If you want to see how to be a successful community bank, copy Umpqua in Oregon, they kill it!

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  • Anonymous
    8 years ago

    A small bank as a first venture is overambitious even to the smartest entrepreneurs. It is very difficult to compete with the bigger banks. However, if that is what you want to do, then I would recommend you become a private lender.

    You can choose to offer short-term unsecured loans i.e. payday loans, or longer-term real estate secured loans (or based on any other collateral you may choose).

    Last recommendation: I would recommend you start working at an investment managing, private equity, banking institution or any other financial institution first. This will help you gain experience of how these institutions operate. Plus, you can save some money from your salary for capital.

    Good luck on all your ventures

    Source(s): Aspiring private lender.
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  • 3 years ago

    I might suggest one to try this web page where onel can get rates from different companies: http://HELP-INSURE.NET/index.html?src=2YArufSug06b...

    RE :How much do bank owners earn?

    I have my BA in business, but thinking of getting my MA in finance.

    I value my independence and hate the idea of punching a clock the rest of my life. I like the idea of opening up a small local community bank or a credit union.

    How much do local bank owners earn?

    How much do credit union owners earn?

    Is it terribly difficult to set up either?

    Follow 4 answers

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  • 8 years ago

    The job you are describing is really as a manager. As the other answer said, financial institutions are not owned by individuals.

    You can find average earnings by job at the US Bureau of Labor Statistics.

    http://www.bls.gov/

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  • Rick B
    Lv 7
    8 years ago

    I don't believe banks are owned by individuals.

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