Small Banks in a Changing Financial Environment

摘要

The primary focus of the study is the potential effects of recent regulatory and technological changes on the viability of banks of different asset size. Emphasis is placed on small banks, for which joint consideration of larger banks provides perspective. An overview of the financial condition of different sized banks is provided in order to assess the ability of small banks to adapt to recent changes in the financial environment. Additionally, in-depth analyses of the cost characteristics of the banking industry are conducted in an effort to examine the potential effects of these changes on the relative cost efficiency of banks of different size. Lastly, the findings of a nationwide survey of banks are presented which provide insight into the perceptions of bankers across the nation on the effects of past and possible future regulatory changes on their competitive position.