LIVE at Bob’s: The Health of RGV’s Banking Sector


EDINBURG, RGV – Michael Williamson, Edinburg market president for PlainsCapital Bank, is one of our special guests as we look at the health of the region’s banking sector with economist Salvador Contreras.

Contreras is associate professor of economics at the Center for Border Center for Border Economic Studies, which is part of the Robert C. Vackar College of Business & Entrepreneurship at UT-Rio Grande Valley.

Every quarter, Contreras produces Border Business Briefs, a publication that checks the pulse of the Rio Grande Valley economy. The most recent edition looks at the region’s banking sector.

“Banks play an important role in the economy,” Contreras said. “They facilitate a secure way to protect individuals hard earned income and provide credit to households and businesses. The banking sector is critical to the stability of the overall economy. In this piece, we take a close look at the health of the local banking sector. Understanding the regions banking sector provides us with a way to gauge the region’s economy and trends.”

Contreras said he and his team of economists limited their analysis to banks supervised by the Federal Deposit Insurance Corporation.

“We began by looking at the size and health of the region’s banking sector. We found evidence that suggests that the region’s banking sector is in excellent health. Bank capitalization and leverage levels are sound. However, one area of concern is the contraction in credit in Cameron and Hidalgo County. This may be a precursor to lower economic activity in the region. This stands in contrast with the rest of Texas that has seen continued expansion of credit.”

Williamson will give his opinion on the findings of Contreras’ report.

The LIVE at Bob’s show takes place at Bob’s Steak & Chop House in Edinburg on Tuesday, Oct. 30, with doors opening at 11:30 a.m. The program starts promptly at 12 noon. Tickets cost $25 and include a three-course lunch. To reserve a seat call Mae Vela at Bob’s at 956-650-9052 or purchase a ticket here.