Journal Article

Market Concentration and Its Impact on Community Banks

Abstract: This article explores the effect that market concentration has on the ability of community banks to expand in their small markets, especially rural ones. For small banking markets, a community bank is often prevented from selling to a crosstown rival because of market concentration regulations, even if it might be in the best interest of consumers for other reasons. For example, compared to an in-market community bank, a large out-of-market bank holding company may have less interest in local institutions and less knowledge about market conditions and the reputation and quality of local businesses.

Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: The Regional Economist

Publication Date: 2018

Volume: 26

Issue: 1

Order Number: 9