Endangered financial institutions type: American community Banks

Over the past year, hundreds of community banks are not closing down, that is sold to big banks. But the next few years, the United States number more than 7,700 small banks at home, and more will become history, whether intentional or unintentional, it government and regulatory decision-making are those classified as large banks absolutely reliable results.
It sounds sad, but the regulatory authorities, shareholders and even consumers, this may not a big tragedy. Of course, this does not mean we will like to see community banks disappeared. Decision-making level should be thought of course, that speed up the small independent disappearance of the norms of financial institutions, is causing a negative net effect.
In some ways, the recent substantial increase in the number of banks close family - possibly up to 300 this year - only to return to more financial institutions to expand the scale of long-term trend, over the past 10 years, a great period in the economy, this trend The slow down. In the early 1990s, the Federal Deposit Insurance Corporation (FDIC) has 16,074 financial institutions supervision at home .10 years, this figure dropped to 10,222 - an average of one year disappearance of 585 banks.
But in the next 10 years, the rate of decline slowed. To the end of 2007, FDIC oversight bodies Number of about 240 a year on average decrease was mainly due to the merger. The rate of decline accelerated from 2008 onwards, mainly due to bank failures, 157 this year, while only 3 in 2007.
Beneficiaries of this trend is that the largest bank group in the early .1990, the assets of more than 10 billion U.S. dollars of the 59 banks control 31.8% of U.S. financial assets. To this day, over billions of dollars of assets of banks increased by nearly doubled to 109, the proportion of assets held more soar to 78.6%.
This situation will continue. First of all, FDIC's problem list had 860 banks - many are yet to relief funds to pay 600 banks list. Not all questions will be taken over banks, but many banks will eventually is the largest bank in the capital than the rich eating. But even a good physical community banks, the future looks bad.