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Chicago Fed Letter, No. 178, June 2002
Whither the Community Bank? Relationship Finance in the Information Age
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.
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