Summary List Placement
For all the attention the big banks get, plenty of people still entrust their savings to local financial institutions.
Community banks and credit unions, whose total assets are typically less than $1 billion, hold about 20% of total deposits in the US, the FDIC says.
But while their market share hasn’t changed much over the past few years, the total number of community banks has been steadily declining since the financial crisis of 2008.
Similar trends have been playing out at regional banks, whose total assets are typically more than $10 billion but less than $1 trillion, are also under pressure to cut costs. In some cases it’s led to consolidation. In 2019 two of the biggest regional banks — BB&T and SunTrust — combined to create Truist in a deal valued at $66 billion at the time.
And the coronavirus pandemic is poised to intensify the headwinds that both community and regional banks have already been facing, experts say.
While cost pressures are being felt even at the biggest US banks, those huge firms have had more money to throw at digital transformations. That’s been a help in navigating sudden changes in consumer behavior prompted by the pandemic — namely, a …read more
Source:: Businessinsider – Finance