As being a rural community bank and U.S. Treasury certified Community developing standard bank (CDFI), Southern is completely conscious of the value of CDFIs in rural areas through the nation. Inside our current paper, Banking in Rural America: Insight from a CDFI, we illustrate why CDFIs like Southern are well-equipped to handle the difficulty of community banking institutions making rural communities according to SouthernвЂ™s current purchases of three banking institutions in various Arkansas areas.
Over the past three years, more than half of all of the banking institutions in America have actually closed. These figures are even greater due to: the depopulation of rural counties; technological advances lessening the need for brick and mortar facilities; lack of succession planning; and increased and adverse regulations of the Dodd-Frank Act, which harms small, local lenders by imposing on them one-size-fits-all financial parameters aimed at big Wall Street banks in rural areas. But, the essential sobering statistic is the fact that of all of the bank closures, almost 96 per cent of these are community banking institutions.
The after examples indicate why vast quantities of community bank closures, specially in rural areas, are incredibly problematic:
- In line with the U.S. Treasury, community banking institutions and CDFIs made almost 90 per cent of this buck level of small-business loans beneath the continuing State small company Credit Initiative (SSBCI). Community banking institutions originated 1,853 loans nationwide beneath the system in 2013, while CDFIs accounted for another 2,008. Read more