When smaller gives way to bigger

Hester Pierce and Robert Greene at the Mercatus Center published a report showing the relative concentration of large banks vs. small banks in the US.  Small banks (banks with $10 billion in assets or less) are becoming a smaller part of the banking landscape. The authors note the correlation of this change with the Dodd-Frank Act and the resulting concentration of financial assets into large banks. According to Pierce and Greene:

Since the second quarter of 2010—immediately before the July passage of Dodd-Frank—to the third quarter of 2013, the United States lost 650, or 9.5 percent, of its small banks.

Medallion Bank is a small bank by the definition above, strong and built for the long term. Like small banks everywhere, we choose to provide niche services that relatively few others provide. Also, compared to large institutions, it is the accessibility of our people, the availability of our expertise, and the personal attention we provide that distinguishes us. These services and characteristics have real value and we are rewarded every day by the contractors and dealers who choose us over our competitors. But watching the decline in the numbers of small banks is disappointing and feels like a real sea change in the market.

Besides your experience with Medallion (assuming you work with us!), what are your best experiences with small financial institutions or other small companies?

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