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Scale Matters: Community Banks and Compliance Costs

Drew Dahl, Andrew P. Meyer and Michelle Neely
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Drew Dahl: Federal Reserve Bank of St. Louis
Andrew P. Meyer: Federal Reserve Bank of St. Louis

The Regional Economist, 2016, issue July

Abstract: Research shows that complying with government regulations is more burdensome for smaller community banks than larger community banks. Despite spending proportionately more resources on compliance, the smaller banks do not perform as well as the larger ones, at least in one key metric.

Date: 2016
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