I want to own a bank is this a good investment?

Question

i think it is because people will always need them and theres not much work in having one? right

Answer 1

Bank of America BAC, would be my suggestion.

Answer 2

Owning a bank, from before inception to going concern is a lot of work, although much is done through agents, consultants, etc...which is expensive.  First you have to get the OK from your state's Banking Commission and the FDIC.  The state banking commission might have all kinds of weird rules..for example, a rule such as one stating that 100% of your Board of Directors must live within X number of miles of the bank.

You probaly want to arrange membership with the FHLB, or become a member bank within certain FRB programs.  You must raise capital.  There is only ONE private equity firm dedicated to de novo banks in america that i'm aware of.  ONE.  Typically, smaller banks raise funds from prominent members of the community, or are self-funded by very wealthy individuals.  You must pass many many regulatory requirements, hire competent people (i'm actually available right now and banking was my specialty for some time; i'm available b/c i lost my job due to medical leave at the wrong time..nobody's fault really), get the best comprehensive suite of banking software possible.  get risk management systems in place, committees on deposits, lending, investing.

set up insitutional relationships.  figure out physical locations and online strategy.  strategic partnerships?   these days Other Income is very important, especially as margins are due to thin out as a result of the subprime/CDO shakeout. other income includes trust fees.

anyway, historically, banking has been very profitable, with high returns on assets and equity, and strong profit margins.  with tiny tiny amounts of traditional forms of leverage.  please feel free to contact me w/more questions.

Answer 3

off course you can do it also try to develop good loan to people

as the latin market due give good interest and open mind good luck

i would like to be your first customer due i have a industry company and usa and manufacturing in mexico

Answer 4

Good timing, banks and all other financials are leading the decline, with no bottom in sight.

Buy the banks now and it will be like trying to catch a falling safe.

Answer 5

Wrong. It def takes a lot of time and money. And you would def have to take into consideration of how you want to start one, go through your community, get permits, go to school for business degrees, if you want to invest with people, how to do loans, everything. If anything just start off by working at a bank, you have to be good with numbers. You can even just work your way up in the banking world.  

Look into it, read up about what it takes, the degrees necessary, if any.

Good luck!