Small and community-based banks remain vital drivers of economic growth in their regions even amid an increasingly challenging business environment, McGuireWoods Pittsburgh office managing partner Penny Zacharias told the Pittsburgh Business Times in a July 4, 2024, story.
In the article, “How Community Banks Are Keeping Small Sustainable,” Zacharias said higher interest rates have ratcheted up pressure on community banks, but remaining small and independent affords them other advantages, including a robust understanding of local markets.
“Smaller banks tend to be relationship banks, and relationships matter tremendously in this business,” Zacharias, a debt finance lawyer, told the Pittsburgh Business Times. “Small businesses rely on banks — often, local banks — for their cash flow management, financing their operations and investments in equipment and technology.”