In that regard, a survey by the Cabinet Office conducted on large firms showed that firms’ medium- to long-term growth expectations have been maintained. However, the dominant majority in terms of the number of firms and the number of workers is small firms.
Their local presence and personal interactions give community bankers an advantage in providing financial services to those customers for whom, despite technological advances, information remains difficult and costly to obtain. These close ties, however, represent a two-edged sword, exposing community banks to risks even as they provide a valuable and profitable market niche.