Why would a business choose a state bank over a national bank?

Question

Why would a business choose a state bank over a national bank?

A. • Local banks are required to be FDIC insured.
B. • The business plans to expand into other regions.
C. • The business works with a lot of local customers.
D. • Local banks usually have the lowest interest rates.

Answer 1

C. • The business works with a lot of local customers.

Local banks may have a better understanding of the local market and community, and may offer more personalized service to local businesses. Additionally, local banks may be more familiar with the business's needs and easier to communicate with compared to larger, national banks.