Publications: The Impact of the Growth of Large, Multistate Banking Organizations on Community Bank
Profitability
by Gary Whalen
Abstract
Especially since the passage of the Riegle-Neal Act in 1994, community banks
increasingly face large, multistate holding company (MSHC) rivals in the local markets
in which they operate. These large MSHCs more often operate through interstate
branches, rather than through the offices of a separate subsidiary headquartered in-state.
Disagreement persists about the likely effects of this trend on community banks. If large
absolute size, or an interstate branch form, confer competitive advantages, the
profitability of community banks should be lower in markets where they face such rivals.
On the other hand, a number of observers cite possibly offsetting advantages associated
with small size, such as a greater ability to offer valued personal service. To date,
virtually no empirical studies have focussed on this issue.
Disclaimer
Any whole or partial reproduction of material in this paper should include the following citation: Gary Whalen " The Impact of the Growth of Large, Multistate Banking Organizations on Community Bank Profitability. , " Office of the Comptroller of the Currency, E&PA Working Paper 2001-5, December 2001.
Availability
The paper is available for viewing in Adobe's PDF format. The PDF viewer is available for
download free from Adobe in versions for
different platforms.
The complete paper is available in hard copy from the OCC's Communications Division. If you would like to receive a copy of a paper through the U.S. Postal Service:
- Write to the Communications Division, Mail Stop 3-3, Office of the Comptroller of the Currency, Washington, DC 20219, or
- Send an e-mail request to the Communications Division at foia-pa@occ.treas.gov.
Be sure to identify the paper(s) you want and to include your complete mailing address, including ZIP code.
|