Nonetheless, community banks face significant challenges today. The number of community banks has declined significantly over the past decade. The Federal Deposit Insurance Corporation’s “Problem List” of at-risk banks has declined from 888 at the peak of the financial crisis to 291 at the end of 2014, but that is still well above typical pre-crisis levels of fewer than 100.
If cash demand falls significantly then retailers and banks might lose the incentive to provide ATMs and cash tills, which are costly to maintain. 8 If cash demand fell to the point where retailers and banks no longer accepted, nor issued, it then legal tender money might disappear. This is the scenario faced by Sweden.