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June 2002, No. 178
Last Updated: 05/15/2002

Whither the Community Bank? Relationship Finance in the Information Age

Robert DeYoung , William C. Hunter, Gregory F. Udell

Technological progress has eroded one of community banks’ traditional advantages—the information edge from being located close to their customers. Is the community bank business model still viable in a world where financial relationships do not depend on face-to-face contact? The authors review some of the existing evidence and look forward to a research conference where participants will offer new evidence.