Being a community that is rural and U.S. Treasury certified Community developing standard bank (CDFI), Southern is completely conscious of the necessity of CDFIs in rural areas through the entire nation. Within our paper that is recent in Rural America: Insight from a CDFI, we illustrate why CDFIs like Southern are well-equipped to deal with the issue of community banking institutions making rural communities centered on SouthernвЂ™s present purchases of three banking institutions in various Arkansas areas.
During the last three years, over fifty percent of all of the banking institutions in the usa 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, probably the most sobering statistic is of all bank closures, almost 96 % of those have now been community banking institutions.
The examples that are following why vast quantities of community bank closures, particularly in rural areas, are incredibly problematic:
- In line with the U.S. Treasury, community banking institutions and CDFIs made almost 90 % of this buck level of small-business loans underneath the State small company Credit Initiative (SSBCI). (más…)