Banks that don't offer credit cards lack competitive advantage, particularly in the community banking arena.

To remedy this, the Independent Bankers Association of America (IBAA) plans to launch a so-called "monoline" bank, called the Total Credit Management Bank, or TCM Bank, to underwrite and securitize Visa and MasterCard credit cards carrying the logo of participating community banks. The expected participants are small banks-some with as few as $50 million in assets, says TCM CEO Michael Hosemann.

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