Community Bank Law and Legal Definition
Community bank is an independent, locally owned and operated commercial bank. It derives its sources of funds from, and operates exclusively in the community in which it is based. A community bank is not affiliated with a multibank holding company. It offers the entire standard banking services including checking, savings, loans and mortgages, and safe deposit boxes for both consumers and business customers. The advantage of banking with a community bank over larger banks is that all lending decisions are made locally by people who understand the unique challenges and financial needs of the business people and residents who live and work in the community where the bank serves.