SPONS CONTENT_Up Next_Comm Banking_Oct23 - 1
Consider your favorite local establishments.
What’s your favorite area restaurant? How about your go-to local recreation center or golf course? Is there a nonprofit organization in the community you support?
There’s a good chance, in one form or another, an area community bank played a role in establishing, enhancing, or supporting many of your local favorites.
Don’t just take our word for it.
According to the Independent Community Bankers of America (ICBA), community banks (often referred to as “America’s Favorite Lenders”):
Provide roughly 60% of all small business loans
Make more than 80% of agricultural loans
Have nearly 50,000 locations nationwide
Employ nearly 700,000 people
WHAT’S SPECIAL ABOUT COMMUNITY BANKS?
Community banks play a crucial role in the U.S. financial system by providing access to credit and other financial services to individuals and small businesses in local communities. They tend to have a better understanding of the needs of their clients and are more responsive to those needs compared to larger banks.
In addition to providing financial services, community banks are key to community development. They are often involved in community initiatives, such as supporting local businesses, funding community projects, and providing financial education to residents. These initiatives contribute to the overall economic growth of the communities they serve, creating jobs and improving the quality of life for residents.
Most important, community banks are relationship-based financial institutions, unlike larger banks that tend to be more transaction-oriented.
With community banks, when you save and spend, your money gets invested into local and small businesses which support your local community. As a result, your neighborhoods blossom and you thrive.
The ICBA also reports that:
Over 75% of U.S. adults agree that locally based lending decisions are important when determining where to bank.
69% of U.S. adults recognize the importance of banking with a locally based financial institution.
70% of U.S. adults cite the importance of personal banking relationships in choosing where to bank.
ARE ALL COMMUNITY BANKS THE SAME?
No.
By definition, community banking organizations are those with less than $10 billion in assets, according to the Federal Reserve. And fundamentally, community banks are considered to be well-established financial institutions that work to support the communities they serve. And, community banks, like other banking entities, must follow all applicable regulations.
Beyond that, however, how an individual community bank operates and chooses to advocate for and support their communities is up to them.
HOW DOES PARK BANK SUPPORT ITS COMMUNITY?
Sure, we love banking, but we didn’t get into this business simply for that reason. We do it for the love of helping the people and businesses in our community thrive.
At Park Bank, our vision is a stronger community that embraces diversity, leads the conversation around equity and inclusion, and stands at the forefront of positive change. That’s why we donate time, resources, and money toward local causes to make a difference in the lives of people who make our home a place unlike anywhere else.
Read more: https://www.parkbank.com/blog/post/community-banks-at-work
