Top Reason for Community Bank Shrinkage is Regulatory Burden (Surprise!)
Community banks constituted 64% of total banking assets in 1992. By 2015, their market share had dropped to 19%. Yet community banks still account for the largest share of small-business loans. The top reason for the shrinkage is regulatory burden, such as Call Reports that have grown from 53 items in 1970 to 2,379 items last quarter. [1/25/16]