Most loans products have worked well, though some have caused significant problems; subprime loans in the United States are the clearest example. The level of interest rates in most developed economies in the past decade has been about half that in the decade to 1995.
While I am troubled by the declining community bank footprint, I am not surprised that banks are choosing to merge or to be acquired. I am well aware of the significant challenges that See the Independent Community Bankers of America (ICBA), “Community Banks Made 60 Percent of PPP Loans to Small Businesses,” news release, September 1, 2021, https://www.icba.org/newsroom/news-andarticles/2021/09/01/icba-to-congress-ppp-forgiveness-should-be-straightforward.