The Special Characteristics of American Community Banking
AbstractThe banking system in the United States has always been unique in the sense of containing large numbers of small banks closely tied to their local communities. But the banking system in this country has also undergone tremendous change during the last 20 years due to deregulation and mergers. While community banks still comprise the vast majority of banks and maintain strong earning ability, the question arises what are those small banks’ special characters which make community banks success in providing credit to certain business sectors? This paper explores some of the more significant characteristics of community banking, examining the importance of community banks in small-business lending in terms of their ability to handle “soft” data, their tendency to rely on retail deposits for funding, and their emphasis on personal service.
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Bibliographic InfoArticle provided by Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences in its journal International Journal of Academic Research in Accounting, Finance and Management Sciences.
Volume (Year): 2 (2012)
Issue (Month): 2 (April)
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Community Bank; characteristics; American Community; banking; performance;
Find related papers by JEL classification:
- G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
- E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
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