Can You Describe the Importance of Community Banking in Kansas?
Keeping community banking in Kansas alive and well hasn’t always been easy. In fact, quick thinking and solidarity among community bankers have kept small banks thriving in our communities.
Decades ago, community bankers in Minnesota organized when they were alerted that a small group of lawmakers working on behalf of larger banks were drawing up a bill that would change the laws governing banking structure in that state. Those community bankers offered testimony on why bank concentration would be bad for citizens of that state and were able to block the legislation.
The banking system in the United Sates has evolved in the last couple of decades, due in part to mergers and various regulatory events. However, community banks still play an important factor in Kansas and other states throughout the nation.
Rural communities, which are numerous throughout Kansas, rely on community banks as they supply a substantial share of banking services to these residents. Family farmers and small businesses rely on community banks for their banking services, which are often based on and strengthened by the relationships they’ve built with each other.
Community banks also have a leg up on the bigger banks in some respects, particularly when it comes to small business loan services. When a loan officer at a community bank looks over an application, they can take many things into account to help them guide their decisions. They look at more than just credit scores, and this benefits everyone involved.
Larger banks have a focus on large depositors, whereas community banks have a focus on small depositors, which is why community banking in Kansas is so important.
Community banks offer so much to our community including:
- A focus on the needs of families, farmers and businesses
- Strong involvement in local community affairs
- The ability to use local deposits for loans to local residents
- The ability to consider the character of loan applicants
- Being able to understand the needs of small business owners
- A balance between the needs of o, employees and shareholders
We welcome any competition that operates in a fair and honest manner under the same rules, regulations and tax treatment as our institutions. Legislation benefiting big banks, credit unions and the farm credit system, at the expense of community banks, is something that must be fought. We will do just that. Community bankers in Kansas have a great record of standing up for what is right for their banks and their communities.
Fortunately, community banking in Kansas is bolstered by the CBA of Kansas. We work collectively to create value for Kansas community banks. We accomplish this through advocacy, education and services that benefit customers as well as the communities they serve. Visit us online today and learn more about our focus on Kansas community banks.