Archive for January, 2012

The History of Banking: Not As Dry As You Might Think

Monday, January 30th, 2012

The history of banking — on the surface, those four words send many running for the hills. The history of banking? Yikes. Right up there with the history of algebra, of paper, of weaving…each perhaps just a little dry.

But the history of banking actually is a fascinating subject. Really. Think of it. The ancient Romans are credited with creating formal banking as we know it today. The Knights Templar essentially ran a bank. (Imagine your banker riding his steed across a continent protecting bags of gold and wacking heads in the process.) Kings of old bankrupted entire countries, abusing their own banks to fund wars and chase treasure. 
That's good stuff….

The fine folks at Investopedia wrote a really good narrative on the history and evolution of banking, tracing its roots in ancient temples to the modern system in use today.
Again, good stuff.

At Centennial, our history is a little less nuanced. Chartered in 1999 and starting out as a hometown bank in Conway, Ark., we've held on to that hometown ideal while growing throughout central Arkansas and across Florida, from the Panhandle to the Keys (with more locations to come…).

So, think of us as your banking knights protecting our hometowns from usury, bad customer service and unnecessary fees.
 

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Banking Terms Made Palatable, Vol. 1

Tuesday, January 24th, 2012

People say bankers never have any fun. Posh.

At Centennial, we may have to return a check for lack of funds, but we'll never return a joke for "insufficient funs."

Indeed, boom goes the dynamite.

Just take a look at how much fun can be had with otherwise boring and tedious banking terms. Think of what follows as an education…(cue Kevin James)…in fuuun.

We now present the first installment of…

Banking Terms Made Palatable…Palatable….Palatable…Palatable

This week's entries:

  • Future Dating

  • Regulation Q


Future Dating:

For dads with 13-year-old daughters, future dating is the leading cause of stress in the United States.

For banking customers, future dating is what takes place every other Friday at most offices in the western world. Ladies and gentlemen, we give you direct deposit.

In the banking world, that's what future dating is. According to our good buddies at Investopedia, future dating is "crediting a bank account to which the funds will be made available at a later date…"

And they add that future dating now is popular among government transactions as well. 

"Commerce, this is Defense. Dinner. You, me. I'll pick you up at 8…"


Regulation Q:

A requirement by Her Majesty's Secret Service that James Bond send thank-you notes to Quartermaster for the special gadgets and weapons developed and used in successful missions. (It helps to know a little James Bond, folks. Learn up here.)

In the banking world, Regulation Q is simple. It's a Federal Reserve regulation that caps the interest rate banks can pay on savings deposits. Investopedia says this rule was implemented to prevent loan sharking, but alas, offers no explanation as to the title. Regulation Q? Really?


Tune in next time for another installment of Banking Terms Made Palatable, where we just may visit fun concepts like "belly up" and "easy money"….They're actual banking terms, people, we promise.
 

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CENTENNIAL BANK TOP 100 REASONS

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NOTICE OF CHANGES IN TEMPORARY FDIC INSURANCE COVERAGE FOR TRANSACTION ACCOUNTS

All funds in a "noninterest-bearing transaction account" are insured in full by the Federal Deposit Insurance Corporation from December 31, 2010, through December 31, 2012. This temporary unlimited coverage is in addition to, and separate from, the coverage of at least $250,000 available to depositors under the FDIC's general deposit insurance rules.


The term "noninterest-bearing transaction account" includes a traditional checking account or demand deposit account on which the insured depository institution pays no interest. It also includes Interest on Lawyers Trust Accounts ("IOLTAs"). It does not include other accounts, such as traditional checking or demand deposit accounts that may earn interest, NOW accounts, and money-market deposit accounts.

For more information about temporary FDIC insurance coverage of transaction accounts, visit www.fdic.gov.

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