Banklist

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BANKS

Executive Summary

Now that most of L.A.’s big banks have been swept up in a nationwide wave of consolidation, the local commercial banking landscape is dominated by medium-sized specialty and community banks. These cater to specific corporate and small-business needs, which fall outside the range of the standardized services the national giants offer.

In particular, there are a large number of local banks that provide financial services for the many Asian-American businesses in L.A. County. Whereas large national banks are often considered ill-equipped to respond to the requirements of minority entrepreneurs, smaller banks make it their business to work with them. They speak the same language as their clients and have overseas connections that can facilitate international transactions.

Among the strongest local performers over the last 12 months was Imperial Bank in Inglewood, now ranked second on the list after its assets increased by 50 percent last year.

The Pacesetter

Sanwa Bank California, a subsidiary of Japan’s Sanwa Bank Ltd., is the largest commercial bank headquartered in Los Angeles County and the fourth largest in California.

Although its Japanese parent is in the midst of financial crisis, Sanwa Bank California reported a 16 percent increase in earnings for the first half of 1998.

The growth came about as a result of an increased volume of consumer loans, such as residential mortgages and indirect car loans, and non-interest income, such as fees and service charges. Commercial lending remained flat, however, compared to the same period last year.

Sanwa Bank California, as one of the few medium-sized, full-service commercial banks in Los Angeles, is the subject of persistent speculation as a takeover target. Sanwa’s major Japanese rival, Sumitomo Bank, recently sold off its California subsidiary, partly in response to its financial difficulties at home.

Recently, Sanwa Bank California registered with the Securities and Exchange Commission to issue its own family of mutual funds later this fall. These will include two money-market funds, an equity fund, a global asset allocation fund, and a bond fund. Analysts predict Sanwa’s mutual funds will do well if the bank provides a product that is not easily available elsewhere.

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