In a new report, KBRA examines the community and regional bank business model in the wake of certain high-profile bank failures in the U.S. KBRA believes that the business model for community and regional banks remains sound.

Given that well-managed community and regional banks can achieve cost structures that are competitive with the largest banks, they are not inherently subject to adverse selection with regard to risks, which creates the potential for attractive and sustainable risk-adjusted returns. Moreover, community and regional banks are generally better positioned to exploit local market knowledge, cultivate stronger local relationships, and deliver a more responsive level of service than their large bank peers. The sector also benefits from broad political support as it remains an important financial pillar of the economy, serving as a leader in providing financial services to the vibrant small and midsize business community.

Click here to view the report.

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About KBRA Analytics

KBRA Analytics, LLC (KBRA Analytics) is our premier product platform for high quality data and advanced analytics. Our seasoned teams of industry specialists across each product provide unparalleled insight creating a foundation of deeper analysis and rapid discovery for users. KBRA Analytics is an affiliate of Kroll Bond Rating Agency, LLC (KBRA). KBRA is a full-service credit rating agency registered in the U.S., designated to provide structured finance ratings in Canada, and with credit rating affiliates registered in the EU and UK.

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