A West Georgia bank says it’s too soon to tell how the oil spill in the Gulf could affect their business, but banking analysts are advising investors to be cautious.
Columbus-based Synovus Financial Corporation has 26 branches in the panhandle region. Since the Gulf oil rig exploded in April its shares have dropped more than 30-percent.
Former Chairman of UGA’s Terry College of Business Department of Banking and Finance, James Verbrugge says borrowers and lenders will be impacted.
“If they look at what’s happening in the fishing industry and also what potentially could happen to tourism, a number of small businesses will likely be adversely affected and that could affect the demand for credit by small businesses as well.”
Banks in the Gulf were just starting to rebound from the real estate crisis, but now tar balls are washing up in Pensacola. Synovus officials say they have reached out to their employees and customers in the region.