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What Is A Community Bank?

Monday, August 9, 2010 - 5:51 AM
We hear the term community bank used a lot, but what is the real definition of a community bank? This Huffington Post article has some interesting answers to this question.
Regulators, legislators and bankers commonly take "community bank" to mean a bank with "less than $1 billion in assets under management." Roughly speaking, "assets under management" means the number of loans and other similar investments a bank controls (banks account for deposits as liabilities). This $1 billion rule of thumb is an easy metric to identify, but it doesn't tell us much else. As of the first quarter of this year, 7,256 of 7,932 (or 92%) of FDIC-insured financial institutions held $1 billion or fewer in assets. But there's more to these banks than asset size.



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Ken TuminKen Tumin5,441 posts since
Nov 29, 2009
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