what sets community banks apart from large banks - what do community banks do

The US banking system is considered to be quite unusual because it has some large banks along with a small number of community banks. This divided banking structure is of the legalities of the past which prevented banks from diversifying geographically.

Community banks play a very vital role in the financial system of the United States economy. These banks, in fact, complement the role of large banks by providing relationship banking and credit to small businesses which are usually ignored by large banks.

Most banks offer similar services. However, what set community banks apart from large banks is the way the services are delivered and how the banks treat each individual customer. Community banks offer relationship-based services which large banks are unable to offer given the large customer base.