Definition Of Community Bank
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The definition remains loosely based on size but goes beyond size alone in separating commu nity banks from noncommunity banks.
Definition of community bank. Community banks tend to focus on the needs of the businesses and families where the bank holds branches and offices. A community bank is a locally owned and operated financial institution. A community bank is a depository institution that is typically locally owned and operated. In general the modifier applies to banks with a limited number of branches.
Finally the fdic definition of a community bank offers potential benefits over purely size based definitions in terms of minimizing the influence of outliers that could interfere with statisti. Understanding community banks.
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