The Benefits of Community Banks for Your Community
It’s discouraging to see a steady decline in the number of community banks in operation in Kansas. A report from CBA of Kansas shows that the number of FDIC insured banks chartered in Kansas declined from 455 in 1995 to 263 in 2016.
The loss does not simply involve the owners of community banks when they close or are purchased by a bigger bank. Community banks offer a unique set of benefits to the local community that cannot be duplicated by a bigger bank:
A focus on the needs of families, farmers and businesses: Community banks have a tie to the community, because that’s where their employees live and work. Their priority is to look out for the interests of the families and businesses that are the foundation of the community.
Investment in local community affairs. What happens to the local economy, also impacts the community banks. As a result, community bankers are naturally making decisions that are good for the local economy.
Community banks use local deposits for loans to residents. The money stays local, and fuels the local economy.
Community bankers have personal knowledge of financial decisions. Community bank employees know the customers walking through their doors, so when a loan decision needs to be made, they have more information than just the numbers on an application.
Community bankers have insight into the needs of local business owners and farmers. Community bankers know the role each business plays in a community, and how a farmer is affected by various financial scenarios. Community bankers have a unique perspective on financial decisions that big banks simply cannot imitate.
CBA of Kansas CEO Shawn Mitchell says, “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 is just wrong.”
To learn more about the support CBA of Kansas offers its members in a banking environment that favors big banks, check out more on our website or give us a call. We look forward to talking with you.