Sterling J.U. Laffitte, chairman, S.C. Bankers Association and president, Palmetto State Bank Misconceptions about banking in South Carolina dominate media headlines. The South Carolina Bankers Association wishes to address some important realities about the health of our industry, both on a statewide level and in the global economy.

Tradition banks did not cause the economic crisis. South Carolina's banking industry offers traditional banking services that have by and large avoided risky subprime lending in favor of safe and sound loan underwriting and conservative banking practices.

The South Carolina banking industry is comprised of approximately 100 banks, employing over 13,000 employees in their 1328 branches and offices. That includes $56 billion in assets, all of which keeps businesses open, families above water, and the state's commerce running smoothly. South Carolina's banks have always operated under the strictest regulatory oversight and have persevered throughout the generations.

The constant stream of negative news wrongly implies that the banking industry is responsible for the worldwide economic crisis. The media still uses the over simplistic word "bailout" when referring to government programs such as the Capital Purchase Program (CPP). This recklessness is beginning to take its toll on the S.C. families, business men and women, employees and shareholders who make banking part of their everyday life.

Now, that's not to say they haven't felt the same economic woes that everyone else is experiencing. Our banks are dealing with the deteriorating market conditions that are challenging their ability to attract new capital and deposits. They are indeed dealing with "mark- to- market" issues in previously reliable asset holdings such as Fannie Mae and Freddie Mac preferred stock. More importantly, they are dealing with irresponsible media reports citing private "lists" of problem banks that in no way reflect the strength of their ability to get through this crisis.

These lists are dangerous and confusing for the public. Few people outside the industry know that the 14 South Carolina banks who've applied for CPP money are actually healthy institutions who are selling senior preferred stock shares to the government.

The reality is that the credit is readily available to our citizens from S.C. banks. These banks have bridged the gap caused by the evaporation of credit in auto lending, credit cards and with the collapse of the secondary market for mortgages. Thirty years ago, banks provided 60% of all credit - today, traditional bank lending provides less than 30%. But that number is growing as banks strive to meet the credit needs of customers seeking auto loans, home mortgages and expanding business needs.

The members of the South Carolina Bankers Association appreciate the recent concern over these unique economic confluences, and we stand ready to answer all your questions about the CPP recipients, bank lending, and the need for clarity in public oversight and policy.