Search Results
Journal Article
Community Bank Funding Is Getting Costlier and Riskier
Banks’ core funding has been under pressure since the Federal Open Market Committee (FOMC) began raising rates in early 2022. As depositors shift funds out of low-yielding savings and noninterest-bearing deposit accounts and into more lucrative alternative investments, community banks have increasingly turned to longer-maturity deposits and borrowings to finance their balance sheets. Although these funding sources allow banks to retain their asset size, they are both more expensive and potentially less stable.
Working Paper
Does Scale Matter in Community Bank Performance? Evidence Obtained by Applying Several New Measures of Performance
SUPERSEDES WP16-15 We consider how size matters for banks in three size groups: banks with assets of less than $1 billion (small community banks), banks with assets between $1 billion and $10 billion (large community banks), and banks with assets between $10 billion and $50 billion (midsize banks). Community banks have potential advantages in relationship lending compared with large banks. However, increases in regulatory compliance and technological burdens may have disproportionately increased community banks? costs, raising concerns about small businesses? access to credit. Our evidence ...
Working Paper
"Let Us Put Our Moneys Together": Minority-Owned Banks and Resilience to Crises
Minority-owned banks have a mission to promote economic well-being in their communities. In particular, specialization in lending based on a central mechanism of shared-minority identity can yield an advantage in serving community needs through times of financial and economic crises. To test this proposition, we analyze individual banks in their local market context from 2006 to 2020. Results suggest minority-owned banks improve economic resilience in their communities during the global financial crisis (GFC) and the COVID-19 crisis through increased small business and household lending, but ...
Speech
2019 Community Banking in the 21st Century Research and Policy Conference
Philadelphia Fed President Patrick Harker discussed the importance of community banks and issues they face, including technological change, demographic pressures, and regulatory burden during a keynote speech at the Community Banking in the 21st Century Research and Policy Conference in St. Louis.
Working Paper
Is Bigger Necessarily Better in Community Banking?
We investigate the relative performance of publicly traded community banks (those with assets less than $10 billion) versus larger banks (those with assets between $10 billion and $50 billion). A body of research has shown that community banks have potential advantages in relationship lending compared with large banks, although newer research suggests that these advantages may be shrinking. In addition, the burdens placed on community banks by the regulatory reforms mandated by the Dodd-Frank Wall Street Reform and Consumer Protection Act and the need to increase investment in technology, ...
Community Banking Conference Highlights PPP Research
The Paycheck Protection Program was the subject of several papers at this year’s community banking conference.
Journal Article
Tailoring Bank Regulations
Policy Update article: Tailoring Bank Regulations
Speech
Introductory Remarks: 2022 Community Banking Research Conference
St. Louis Fed President Jim Bullard welcomed community bankers, researchers, policymakers and bank regulators to the 10th annual Community Banking Research Conference. Held in-person and virtually this year, the conference is sponsored by the Federal Reserve System, the Conference of State Bank Supervisors (CSBS) and the Federal Deposit Insurance Corp.Bullard discussed some of the challenges and opportunities that community banks have faced since the event’s inception. He recognized several conference features added in the past decade, while acknowledging the passing earlier this year of ...
Speech
Introductory Remarks
O’Neill Paese gave introductory remarks (PDF) at the 2023 Community Banking Research Conference. The conference was hosted at the St. Louis Fed and co-sponsored by the Federal Reserve System, the Conference of State Bank Supervisors and the Federal Deposit Insurance Corp.