Scale Matters: Community Banks and Compliance Costs
Andrew P. Meyer and
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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
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.
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