Just one of the many ways
community banks build more economically sustainable communities
Community
banks help America build more economically sustainable communities by lending
to local small businesses, said the Independent Community Bankers of
America ® (ICBA), Community Financial Services Bank (CFSB) and thousands of its
community bank members that are
celebrating ICBA Community Banking Month this month. Community
banks help local economies thrive by helping to put local deposits back to work
in their communities through loans to local residents and small businesses. In
fact, small business lending has always been cornerstone to the community bank
business.
“Community
banks serve a vital role in maintaining the lending flow to fellow small
businesses in their neighborhoods. Often when other banks won’t lend, it’s the
community banks that step up and help Main Street succeed,” said ICBA Chairman
John H. Buhrmaster, president of 1st National Bank of Scotia, N.Y. “Community
banks are small businesses too, which puts them at a huge advantage because
they can relate with the challenges and needs small businesses face better than
anyone else in the marketplace—helping their small business customers through
good times and bad”
Community banks are the primary source of lending for small businesses and farms. For their size, community banks are prolific small business lenders—providing a substantial number of small business loans across the country, including Small Business Administration (SBA) loans. In fact, even though they comprise just 20 percent of banking industry assets, community banks with less than $10 billion in assets make nearly 60 percent of small businesses loans to small businesses.
“By driving local economies and creating local jobs through lending to small businesses and residents, community banks help build more sustainable communities,” Buhrmaster said. “Community banks are an integral part of our nation’s financial system, and they will continue to serve their communities well into the future—making their communities a better place for all residents.”
There
are almost 7,000 community banks, including commercial banks, thrifts, stock
and mutual savings institutions, with more than 50,000 locations throughout the
United States. Assets may range from less than $10 million to $10 billion or
more. Community banks constitute 96.8 percent of all banks.
To follow the conversation on ICBA Community Banking Month,
follow the hashtag #BankLocally on Twitter. To learn more about community
banks, visit www.icba.org
while further information about CFSB can be viewed at www.yourlifeyourbank.com.