An Analysis of Small,High Performing Minority and Nonminority Banks’ Strategies,1980–1988

Abstract

This is a study of high performing, small banks. The study defines a small, high performing bank and, then, compares the performing characteristics between high performing minority and high performing nonminority banks during two distinct time periods: 1980 and 1988. Performance differences between the two groups were greater in 1988 than in 1980. These differences identified the complexity of managing high performing minority banks relative to high performing nonminority banks and suggested the minority banks’ basic banking philosophy and operating strategies may have been a major contributor to their high performing status. All small, high performing banks do not employ the same strategies to achieve high performing status. The markets for the two groups of banks in this study appear to be segmented. Small, minority and nonminority banks employ different strategies to become successful. This report examines those differences.