Opportunities and Challenges Facing Community Banks

Community banks have long been the backbone of the US banking system. Since their inception, they have served as a driving force behind the growth of small- to mid-sized businesses from major cities to rural outposts across the country.

While they face challenges similar to their larger, historically more diversified competitors, down markets often present community banks with unique opportunities. Community banks are frequently able to capitalize on customers' growing dissatisfaction with larger banks. Uncertainties caused by the credit crisis, less personalized service and lack of flexibility are causing increasing numbers of individuals and businesses to seek services provided by community banks.