FDIC Chair Gruenberg speech on “The Importance of Community Banks to the U.S. Financial System and Economy” is worth reading.
He touches on a multitude of topics, concluding that community banks continue to fill a vital niche in our financial system and remain essential in servicing local communities that often are not served by larger banks or non-bank financial institutions.
He stresses the importance for community banks to not underestimate several of the continuing challenges they face: (1) low interest rates, (2) regulatory compliance, (3) information technology and (4) succession planning and recruitment, nor to underestimate their underlying strength.
One of his concluding comments is that “the strong post-crisis performance of community banks underscores their vitality and the critically important role that they play and will continue to play in the financial system and economy of the United States”. (boldface added)
The full text of his speech is located on the FDIC website through this link: “The Importance of Community Banks to the U.S. Financial System and Economy”.