The first factor, the prices of commodities such as crude oil, nonferrous metals, and grains, surged from the beginning of 2007 to the summer of 2008, followed by a sharp decline. In particular, since the autumn of 2008 when the financial crisis occurred, the decline in global demand and the sudden contraction of financial institutions’ funds supply led to a plunge in commodity prices.
During last year’s conference I met with a group of St. Louis area community bankers to hear what was on their minds. I will conduct a nationwide webinar with community bankers next month. In fact, I speak regularly to a number of bank executives, including those who run smaller institutions.