Banking—Applications

Geographic Market Designations

The applicant is asked to respond to the following questions relating to the evaluation of the relevant geographic market and competitive analysis. The aim of these questions is to obtain information that can be used to determine the extent of economic and social ties within a particular market area and, therefore, assess whether competitive forces are transmitted within the area such that the area would constitute a single banking market.

1. Extent of worker commuting among cities and/or counties within the relevant market as indicated in the county or township level journey-to-work data of the most recent Census. Please provide any information (e.g., plant openings/closings or new housing developments) that may have had a significant impact on these data since the Census information was collected.
2. Degree of competition between institutions within the relevant market. This information may include the following:
   1. Detailed information on the pricing of typical deposit and loan products for institutions in the relevant market.
   2. Data on advertising patterns such as:
      • Where do institutions within the relevant market advertise: radio (what stations?), newspapers (which ones?), television (which stations?), telephone directory (which ones?)?
      • What is the frequency of such advertising?
      • What is the geographic target of such advertising?
      • What services are advertised?
   3. Evidence of the movement of customers among institutions within the relevant market area.
   4. Information on the extent of new product and service developments of institutions within the relevant market area (e.g., changes in lobby/drive-thru hours, opening of supermarket branches).
3. Any relevant information regarding natural barriers (e.g., mountain ranges, state forestland, or Indian Reservations) that may impact the determination of the relevant geographic market.
4. Data on check clearings for Applicant and Target. Provide number and dollar amounts and percentages of total of on-us check clearings for a typical non-payday week (i.e., where Applicant's and Target's customers' checks are being presented).
5. A delineation of Applicant's and Target's primary service area (where 75 percent of its IPC deposits are derived and also where 75 percent of its loan business is derived) and/or a delineation of Applicant's and Target's CRA areas.