community bank

{{Short description|Depository institution which is owned and operated locally}}

{{other uses|Community Bank (disambiguation)}}{{Distinguish|Community banking models}}

{{Globalize|date=January 2018|2=United States}}

File:Brazilian_Network_of_Community_Banks.JPG

A community bank is a depository institution that is typically locally owned and operated.{{citation needed|date=September 2021}} Community banks tend to focus on the needs of the businesses and families where the bank holds branches and offices. Lending decisions are made by people who understand the local needs of families, businesses, and farmers.{{Citation needed|date=September 2021}} Employees often reside within the communities they serve.{{Citation needed|date=September 2021}}

In the United States, community banks are not clearly defined.{{Citation needed|date=September 2021}} Most agencies{{who|date=September 2021}} base this term on aggregate assets size with varying definitions such as less than $1 billion (Office of the Comptroller of the Currency) up to less than $10 billion (Federal Reserve Board and Government Accountability Office).{{cite web

| title = Trends in Community Banking

| work = FYI: An Update on Emerging Issues in Banking

| publisher = Federal Deposit Insurance Corporation (FDIC)

| date = 18 May 2004

| url = http://www.fdic.gov/bank/analytical/fyi/2004/051804fyi.html

| doi =

| accessdate = 3 November 2011}} Beyond size (as measured by assets), the Federal Deposit Insurance Corporation (FDIC) imposes a number of additional requirements on institutions classified as community banks.{{cite web

| title = Appendix A: Study Definitions

| work = FDIC Community Banking Study 2020

| publisher = Federal Deposit Insurance Corporation

| date = 16 Dec 2020

| url = https://www.fdic.gov/resources/community-banking/report/2020/2020-cbi-study-app-a.pdf

| doi =

| accessdate = 6 June 2021}} From 1985 to 2004 community banks comprised roughly 94% of all commercial banks in the United States, but the proportion of total national deposits held by Community Banks declined from about 25.89% of all U.S. deposits in 1985 to 13.55% of the U.S. deposits in 2003.

{{cite web

| url = http://www.fdic.gov/bank/analytical/banking/2005jan/article1.pdf

| title = The Future of Banking in America Community Banks: Their Recent Past, Current Performance, and Future Prospects

| author1=Tim Critchfield

|author2=Tyler Davis

| author3=Lee Davison

| author4=Heather Gratton

| author5=George Hanc

| author6=Katherine Samolyk.

| work = FDIC Banking Review (Volume 16, NO. 3)

| date = January 2005

| publisher = Federal Deposit Insurance Corporation (FDIC)

| accessdate = April 30, 2012}}{{cite web

|url = http://www.fdic.gov/bank/analytical/banking/2006jan/article2/index.html#2

|work = FDIC Banking Review (Vol. 17 No. 4)

|date = January 2006

|title = Consolidation in the U.S. Banking Industry: Is the "Long, Strange Trip" About to End?

|last1 = Jones

|first1 = Kenneth D.

|last2 = Critchfield

|first2 = Tim

|publisher = FDIC

|accessdate = April 30, 2012

|archive-date = July 16, 2012

|archive-url = https://web.archive.org/web/20120716021225/http://fdic.gov/bank/analytical/banking/2006jan/article2/index.html#2

|url-status = dead

}} The decline in community banking prevalence in the United States has drawn the attention of economists and policymakers, some of whom have argue that community banks play an important role in macroeconomic stability.{{cite journal

| title = It's a wonderful loan: local financial composition, community banks, and economic resilience.

| author1= Luke Petach

| author2 = Tessa Conroy

| author3 = Stephan Weiler

| journal = Journal of Banking and Finance

| date = May 2021

| volume= 126

| page= 106077

| publisher = Elsevier

| url = https://www.sciencedirect.com/science/article/abs/pii/S0378426621000352

| doi = 10.1016/j.jbankfin.2021.106077

| s2cid= 233917395

| accessdate = June 8, 2021| url-access = subscription

}}

{{cite journal

| title = Further Evidence on the Link between Finance and Growth: An International Analysis of Community Banking and Economic Performance

| author1 = Allan Berger

| author2 = Iftekhar Hasan

| author3 = Leora Klapper

| journal = Journal of Financial Services Research

| date = April 2004

| volume = 25

| issue = 2/3

| pages = 169–202

| publisher = Springer

| url = https://link.springer.com/article/10.1023/B:FINA.0000020659.33510.b7

| doi = 10.1023/B:FINA.0000020659.33510.b7

| s2cid = 189929482

| accessdate = June 8, 2021| hdl = 10986/18128

| hdl-access = free

}}

{{Cite web |title=The State and Fate of Community Banking |url=https://www.hks.harvard.edu/centers/mrcbg/publications/awp/awp37 |access-date=2024-06-12 |website=www.hks.harvard.edu |language=en}}