However, a stationarity assumption of sorts underpins our theoretical and statistical models, in the case of economic forecasting and (macro) policy making as well as in the case of financial analysis and risk management.
Because of the importance of community banks as a source of small business lending and other retail services, we have explored this question but do not yet have any definitive answers. We considered the possibility that underlying demographic characteristics were driving the observed changes in the number of banks in a local market area.