Community banks can thrive: RBA's Stevens

A role still exists for the community banking model, says Glenn Stevens, the governor of the Reserve Bank of Australia.

"The major banks tended to scale back their regional presence, in response to the cost pressures on them after the events of the early 1990s [when several banks went bust], and the changing economics of branch banking which became apparent as financial liberalisation proceeded. This withdrawal left an opportunity, but to take it, someone had to devise a business model that

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