And, indeed, bankers routinely raise concerns with me about the potential for more regulation to drive consolidation in the industry, a topic to which I now turn. 1  These examples reflect a baseline scenario with a fixed set of key assumptions detailed on our website.
The impact of new regulatory costs in our model includes the hiring of additional staff, which results in higher total compensation and lower profitability. We then analyze the changes in the distribution of community bank profitability. 2  BIS central bankers’ speeches  Community bank consolidation The number of community banks in Minnesota has been falling for some time.