# Community bank

- Canonical URL: https://www.gerhardmerk.de/community-bank
- Post ID: 590684
- Modified: 2023-07-25T21:00:52+00:00
- Language: en

## Definition

Credit institution characterized by - small size, - limited geographic reach, and - broad but flat scope: all monetary transactions are handled, but only with local households and small businesses. In Germany, these are mainly banks in the cooperative sector in rural areas. Their organizational disadvantages - above all, not the best possible operating size in terms of costs; less well-trained and advanced staff - are considered to be outweighed by the advantage of having the best information on depositors and borrowers. Thanks to this proximity to their customers and in view of their fundamental reluctance to grow and expand (branch expansion), local banks have generated crisis-proof profits over the decades. This was clearly demonstrated during the financial crisis that followed the subprime crisis. The cooperative banks did not need government assistance. - See authority management, banking, relationship banking, user-friendliness, clubbing, house bank, McDonaldization, regional bank, credit unions, national economy, bank-related. Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent! University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec. Professor Dr. Eckehard Krah, Dipl.rer.pol. E-mail address: info@ekrah.com https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk https://www.jung-stilling-gesellschaft.de/merk/ https://www.gerhardmerk.de/

## Machine-readable

- Generator: Merk Knowledge 1.1.1