South Dakota Bankers Association react to the raise on the interest rate

PIERRE, S.D.(WNAX)- The Federal Reserve Board raised the prime interest rate another quarter point this week, moving it to five-point two five percent.

South Dakota Bankers Association President Karl Adam says the increase was expected.

Adam says the impacts from the rate hikes takes some time to take effect.

The higher interest rates slow loan activity for many banks.

Adam says that hasn’t had much of an impact on the bottom line yet.

Adam says South Dakota banks are in solid financial shape despite several notable failures around the country.