In nearly every small town around where I live, there is at least one bank, if not more. Until recently, I never understood the significance of this occurrence, but the cause is clear. Community banks are are not simply institutions in which one holds money; they are integral pieces of rural communities. Community banks have a profound effect on the individual and their communities in a myriad of ways.
Soon, I will be taking out loans for college, and banking on my own. I can rest assured knowing that my bank will be more likely to give me better rates and the best service. I know that they care about my finances, especially after my family bought a truck. When making financing decisions about the truck, my father went to his local bank and inquired about a truck loan. The loan officers were incredibly kind to him, and they were efficient in giving him a monthly payment quote efficiently. When discussing finances with the dealer later, the dealer gave him a much higher interest rate and …show more content…
They are the backbone of the economy of small communities. Without the services of community banks, small businesses and farmers would be in a lot of trouble. Local lenders are far more likely to give loans to farmers and small businesses. In fact, according to Timothy J. Yeager of the Federal Reserve of St. Louis, 45.8% of local banks lend to small businesses, while only 9.0% of non-commercial banks do. This is likely due to the deep relationships these institutions form within their communities and with the people who live in them. Community bankers live in small communities, so they know their customers and their towns deeply. Therefore, they are far less impersonal to their customers and are more willing to work with these small business owners and agriculturists to give them loans and services that best suit their personal needs. After all, community banks need small businesses and farmers just as much as they need