Money and banking are vital components of any economy,
serving as the lifeblood of financial transactions. In the United States, the
banking industry plays a crucial role in the economy, while the Federal Reserve
acts as the central bank responsible for managing monetary policy. Banking is a
highly regulated industry. How do banks operate in this regulatory environment?
In addition, consolidation – the combining of banking institutions via mergers
and acquisitions – became widespread in the 1980s and continued into the 1990s
and 2000s as regulatory changes permitted banks to operate in multiple states
and technology enabled banking institutions to provide services at lower costs.
This changed the face of banking in the US. While the benefits of consolidating
are clear for an institution, the benefits (and costs) for the consumer are
less clear, especially as media headlines often associate consolidation with
the closing of bank branches. How does this bode for small community and
regional banks? What are the implications of the current environment given the
recent bank scares with Silicon Valley Bank (SVB) and First Republic Bank?
Purpose: Learn about banking and consolidation along with
its impact on the current environment
Facilitator: Fred Eisenreich
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