Article: Smaller community banks facing obstacles.

Byline: Anita Szoke

Sep. 12--PEORIA -- From regulatory burdens to competition from larger banks, credit unions and nonbanks, community banks face a myriad of challenges.

Community bank numbers nationwide have shrank substantially over the years, with small community banks affected the most, according to "The Future of Banking," a banking review compiled by the Federal Deposit Insurance Corp., which insures deposits at the nation's 8,778 banks and savings associations. Nationwide, the number of community banks has dropped from more than 10,000 in 1994 to about 7,200 in 2005, according to the Federal Reserve.

Community banks also experienced a ...

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