Where are banks building new branches during this economic downturn? In mid-sized cities:
http://stlouis.bizjournals.com/stlouis/stories/2009/08/24/focus4.html?b=1251086400^1970601
It turns out, banks are seeing growth markets in mid-sized cities like Festus, Missouri and Crystal City, Missouri:
"According to statistics from the Federal Reserve Bank of St. Louis, the St. Louis metro area market has 3.5 bank branches per 10,000 people. However in the municipality of Festus, the ratio rises to 5.3 bank branches per 10,000, and it’s 6.6 in Crystal City. And that data doesn’t include the latest newcomer, Midwest Regional Bank, which opened its Festus branch Aug. 17.
"Although the combined population of Festus and Crystal City is approximately 14,000, about half the area’s population lives in unincorporated areas, so the potential customer base for banks is actually double that number."
Banks can find clients in cities like Festus and Crystal City just as well as they can in nearby St. Louis. And so the law of supply and demand is leading big banks into smaller cities.
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