In addition, many regional and community banks today rely more heavily than in the past on wholesale borrowings from financial intermediaries, including other commercial banks and securities firms, to supply portions of their funding mix. Indeed, regional and community banks have relied increasingly on the liability side of the balance sheet for funds management.
Most observers, for example, have been unaware of how successful community and regional bankers have been at directly raising uninsured deposits in their local markets when loan demands have exceeded core deposit growth. In the latter half of the past decade, the uninsured deposits at these banks grew more rapidly than those at larger banks.