Whether evaluating how to start a new bank, how to start a community bank, how to start a private bank or how to start an online bank all de novo banks must address specific regulatory requirements to start a bank. These requirements are addressed in seven regulatory factors. De Novo Bank Regulatory Factors Financial history and […]
The term “community bank” is defined by its business model, not by its asset size. A community bank’s business model is defined as local ownership and limited geographic footprint.
The business model is based upon the Bank’s ability to pivot upon knowledge of the market, and customer relationships. This is quantifiable at the Bank level through quality risk management, better service, and a commitment to technology. Risk Management Proper risk management is the key to community banking. Local directors who are knowledgeable about their […]
Basic concepts and strategies represent the heart of developing and implementing a great bank. The Strategic Plan will reflect these strategic advantages as influenced by both market data and the skill sets of the Organizers. Within each category there are subcategories and details, some of which will be left to senior bank management while others […]
The viability of community banks has come into question because of the economic recession of 2008, the passage of the Dodd-Frank Act, and the continued consolidation of banks. The recession of 2008 ignited a round of bank closures and The U. S. Congress responded by passing the Dodd-Frank Act. This law generated thousands of pages […]
Community banks represent the economic heart of any community. These banks stimulate economic growth through quality risk management and knowing their markets. Community banks are the drivers of small business growth. Community banks hold just 14 percent of all banking assets, but originate about 45 percent of all small business loans. Communities depend on local […]
