Abstract
The recent spate of mergers in the U.S. financial sector is the latest example of a trend that startedin the 1980s: a growing concentration and centralization of the financial sector. Comparing 1990to 1980, there was a decline in the number, but an increase in the size, of financial institutions. Thisstudy examines how this national trend manifested itself in Wisconsin's rural banking markets.We find an increase in financial institutions (suggesting greater competition), a higher ratio oflocal to nonlocal financial institutions (suggesting a continuing local connection between lendersand customers), and an increase in the size of service areas (suggesting greater capacity for capitalmobility). Greater capacity for capital mobility suggests a need for alternative credit sources fordeclining rural areas.
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