May 21, 2013
By Bob Coleman
Editor, Coleman Report
“Government regulations have also forced many small community banks to close over the last three years. The Dodd-Frank Act was designed to regulate the banking and lending industries and decrease the likelihood of another financial catastrophe. Unfortunately, an unintended consequence is soaring costs for community banks struggling to comply with the new regulations. Many of those banks are located in smaller communities. The FDIC released a report last month that stated that no new community bank charters have been granted since 2011 due, in part, to Dodd-Frank.
“While there are online financial resources available to those residents who seek them out, the loss of local bank branches is already impacting the small business community. In order to make banking accessible to all, the industry as a whole must continue to invest time and resources into improving online technology, automation, and community education.”