(via WSJ.com) Reports on the death of community banks have been exaggerated, according to a new regulatory study that suggests small U.S. firms are plugging along despite explosive growth by large banks.
The Federal Deposit Insurance Corp. found there are more banks with assets between $100 million and $1 billion today than there were in 1985, according to a study released Wednesday. That’s despite the plummeting total count of U.S. banks, from more than 18,000 in 1985 to less than 7,000 today.
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Most of that decline can be attributed to banks under $100 million. But the study also found that—more often than not—community lenders giving up their charters have been purchased by other banks with similar business models, suggesting local lenders are growing slightly larger rather than disappearing altogether.
Continue reading: Small Banks Faring Better Than Numbers Show, U.S. Report Says (WSJ.com)