Community banks today Let me turn now more specifically to the state of community banking. Convention at the Federal Reserve defines a community banking organization as any institution with assets of $ billion or less.
Although this size-based definition correlates well with the other characteristics of community banks, such a quantitative measure doesn’t capture the full meaning of the term “community bank” or illuminate the business model behind the term. Community banks are locally owned and focus their attention on the needs of the community and its businesses.