Fourth, although the lack of entry may be due in part to increased regulatory burden, much of it can be explained by very low interest rates and a post-crisis expansion that has been slower than usual.
Fifth, at a local level, about one-third of markets have seen a decline in the number of community banks over the past 20 years, but about two-thirds have seen no change or an increase in the number of community banks. It is unclear what factors explain observed changes in the number of community banks at a local market level.