Small banks have an important role in financing economic activity through their financial services for small businesses. There has been a sharp decline in the number of small banking organizations in the U.S. since the early 1980s. A continuation of this trend would raise important issues about...

In October 2005, the agencies that supervise U.S. depository institutions proposed changes in the Basel I capital requirements that will apply to the banks that will not be subject to the new Basel II capital requirements. An objective of the U.S. bank supervisors for proposing changes in Basel...