Community banks ($1 B or less) typically do not have these problems. (Of course, they are also not run by “the smartest people in the room.”). If the big or so-called “small” banks do not destroy the entire banking system,it would be nice to see a predominantly community bank system emerge from this mess.
Community banks ($1 B or less) typically do not have these problems. (Of course, they are also not run by “the smartest people in the room.”). If the big or so-called “small” banks do not destroy the entire banking system,it would be nice to see a predominantly community bank system emerge from this mess.
As a community banker (<$1B Assets), and banking regulatory expert, I agree!
Financial contagions spreads quickly, unfortunately. What I would love to see is decentralized finance in the form of community banks. They have the pre-existing transactional & human capital already.
They also know their borrowers and local market conditions much better than the big guys ever can. They can, thus, usually manage risks (i.e., allocate capital) better and more efficiently.
Community banks ($1 B or less) typically do not have these problems. (Of course, they are also not run by “the smartest people in the room.”). If the big or so-called “small” banks do not destroy the entire banking system,it would be nice to see a predominantly community bank system emerge from this mess.
Ultimately, we need to realize that "too big to fail" is really "too big to survive. "
As a community banker (<$1B Assets), and banking regulatory expert, I agree!
Financial contagions spreads quickly, unfortunately. What I would love to see is decentralized finance in the form of community banks. They have the pre-existing transactional & human capital already.
They also know their borrowers and local market conditions much better than the big guys ever can. They can, thus, usually manage risks (i.e., allocate capital) better and more efficiently.