Community banks and deposit market share growth

Michael Filbeck, Dianna Preece, Stephen Woessner, Steve Burgess

Research output: Contribution to journalArticle

10 Citations (Scopus)

Abstract

Purpose – The purpose of this paper is to examine whether community banks have gained market share at the expense of larger, regional banks in small metropolitan statistical areas (MSAs). The authors also seek to examine market share gains of community banks relative to each other. Design/methodology/approach – The empirical research is conducted using deposit and market share data for community and regional banks between 2001 and 2008. The authors employ regression analysis. Findings – It is found that community banks have gained market share. When regional banks are excluded and the market share gains of community banks relative to each other examined it is found that community banks with lower market shares gain relative to banks with a larger initial share of the deposit market. Research limitations/implications – Research is conducted using eight metropolitan statistical areas (MSAs) in Wisconsin, Minnesota, and Iowa. Thus, conclusions drawn are based on analysis conducted in one region of the United States. Practical implications – The paper's findings are in contrast to traditional thinking about size and market share and suggest that community bank managers should focus on each other as well as regional and megabank competitors. Originality/value – The paper uses market share as a proxy for bank size as a means of explaining the competitive landscape that exists within community banking.

Original languageEnglish (US)
Pages (from-to)252-266
Number of pages15
JournalInternational Journal of Bank Marketing
Volume28
Issue number4
DOIs
StatePublished - Jun 15 2010

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Deposits
Community banks
Market share
Design methodology
Banking
Bank size
Competitors
Expenses
Empirical research
Regression analysis
Managers

All Science Journal Classification (ASJC) codes

  • Marketing

Cite this

Filbeck, Michael ; Preece, Dianna ; Woessner, Stephen ; Burgess, Steve. / Community banks and deposit market share growth. In: International Journal of Bank Marketing. 2010 ; Vol. 28, No. 4. pp. 252-266.
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Community banks and deposit market share growth. / Filbeck, Michael; Preece, Dianna; Woessner, Stephen; Burgess, Steve.

In: International Journal of Bank Marketing, Vol. 28, No. 4, 15.06.2010, p. 252-266.

Research output: Contribution to journalArticle

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