The financial crisis and the persistent regulatory uncertainty on Capitol Hill continue to roil the correspondent banking market, making it difficult for community banks to find crucial support needed to regain their financial footing and start making loans again.

Community banks have relied ontheir correspondent relationships for loan syndications, Fed Funds lines and loans directly to the bank holding company backed by its stock. But many banks offering correspondent services-banker's banks and some commercial banks-have grown leery of doing business withcommunity banks whose health can be difficult to gauge.

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