Reply #42: Banks have a lot of branches in poor locations that were a political precondition to mergers [View All]

[FarCenter]

During the mergers over the last couple of decades, banks were often forced by the politicians and advocacy groups to keep branches open even when they were redundant or to open branches in areas where the business did not support profitable branches.

If this movement of accounts out of the big banks is successful, they should be able to close down many of their worst performing branches.

The major banks have very good accounting systems that evaluate relationship profitability customer-by-customer and branch profitability branch-by-branch.