Banking in Rural America Insight from a CDFI

Being a community that is rural and U.S. Treasury certified Community developing standard bank (CDFI), Southern is completely alert to the necessity of CDFIs in rural areas through the country. Within our present paper, Banking in Rural America: Insight from the CDFI, we illustrate why CDFIs like Southern are well-equipped to deal with the difficulty of community banking institutions making rural communities predicated on Southern’s present purchases of three banking institutions in various Arkansas areas.

Throughout the last three years, over fifty percent of all of the banking institutions in the us have actually closed. In rural areas, these numbers are also greater as a result of: the depopulation of rural counties; technical improvements lessening the necessity for offline facilities; not enough succession preparation; and increased and adverse laws associated with the Dodd-Frank Act, which harms tiny, neighborhood loan providers by imposing in it one-size-fits-all monetary parameters directed at big Wall Street banking institutions. But, the absolute most sobering statistic is of all bank closures, almost 96 per cent of those have already been community banking institutions.

The after examples show why good sized quantities of community bank closures, particularly in rural areas, are incredibly problematic: