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Thanks so much.
Regulatory demands putting the squeeze on community banks and causing many to close up shop.
Are these tough new laws protecting the customer or is that ultimately small businesses and consumers.
We're gonna ultimately pay the price.
Austin associates managing director and principal Craig Manson body is a consultant -- advising these small banks thanks for joining us -- we appreciate it.
Thank you Melissa while it's going to -- of Erica we're gonna train -- -- that.
I guess these banks haven't they survive the financial crisis in the downturn and now they're seeing weak loan demand.
And so much regulation are basically saying we can't make money so -- looking to sell themselves.
-- -- You where you don't yet.
Did the I guess the overview of that is is there are a number of smaller community banks that are making efforts to sell themselves.
But the industry by and large is actually be in pretty good shape coming out of the recession so a lot of maybe the larger community banks are doing very well.
It's it is the smaller ones that are feeling the most pressure.
So what do you think happens from here do they go out of business and sell the smaller what they're talking about and sell themselves to the bigger ones are or how does the industry shake -- An -- did you know bid the consolidation process.
In community banking has been going on -- you know twenty to thirty years.
-- the number of bank charters has declined -- probably 181000.
In the early eighties.
To may be about 7500 banks today so -- is that you know the overall consolidation process is one has been going on a long time.
With the industry down about 60%.
Tom I think dead you know banks choose to sell for a variety of reasons I think the community banks right now that -- that are feeling pressure.
You know there's probably I categorize.
Probably two main things that that those banks that are choosing to sell our -- one is regulatory succeeded.
Are you mention increased regulations and they've got increased capital requirements.
They've got a very high cost of regulatory compliance.
Bomb the examination process is much more aggressive now than it was -- to ten years ago so all of those pile up I think -- really.
You know cause community bank boards of directors to says second guess whether -- still want to be in the business.
And then on the other side of the coin there's there's overall economic concerns you have faith.
Economic recovery that I think even the most optimistic Arctic in its going to be a low once Longoria are below -- long and slow recovery.
-- you mentioned low loan demand in the -- community banks need to make loans in order to make money.
The low interest rate environment is compressing margins so it's much more difficult for banks to make a decent and acceptable level profit.
And then now on the economic side you've got the wild card which is Europe and nobody knows the answer to that question I'm the only.
But assume I think people -- you know for sure steel for sure is that there's going to be a -- the only question is how pub bad -- going to be yeah time will tell all right Craig thanks so much for joining us are.
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