The Federal Reserve Bank of Kansas City’s latest edition of Financial Industry Perspectives features an overview of banking conditions in the Tenth Federal Reserve District and the results of a survey of the District’s community banks. Additionally, the publication includes research on technology outsourcing from a community bank perspective and a look at the adoption of corporate governance practices by community banks in the Tenth District.

     In "From the Mountains to the Prairies: The Banking Environment in the Tenth Federal Reserve District," David Klose, a manager in the Bank’s Division of Supervision and Risk Management, explores the banking environment within the District, including demographics, economic factors and banking structural changes. The author also looks to the future, exploring possible trends.

     In "The 2004 Survey of Community Banks in the Tenth District," Forest Myers and Eric Robbins, economists in the Division of Supervision and Risk Management, explore survey results on a number of issues including staffing, competition, ownership structure and branching plans. The survey finds that representative community banks’ greatest challenges involve basic aspects of successfully managing a bank: funding, income sources, and meeting competition.

     In "Technology Outsourcing: A Community Bank Perspective," economists Eric Robbins and Joe Van Walleghem provide an overview of the technology outsourcing for community banks and the related risk management issues as banks become increasingly reliant on technology service providers.

     In "Corporate Governance: Where Do Tenth District Community Banks Stand?" economist Forest Myers and Jane Padget, senior examiner in the Bank’s Division of Supervision and Risk Management, find that many community banks have adopted principles advocated by strong governance proponents. The study also finds that larger and more complex organizations are more likely to have adopted recommended governance principles and non-family-owned organizations, regardless of size, proportionately engage in more recommended practices than family-owned organizations.

     Financial Industry Perspectives is available on the Bank’s public web site at www.kansascityfed.org. A print copy is available from the Federal Reserve Bank of Kansas City upon request.

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