The model that has stayed steady through all this is the local community bank, with its simple, understandable model, where deposits are gathered locally, lent locally, and the spread income is used to support the same customers who provide the deposits and loans.

FORBES: Banking Fees, Simplified

The Newcastle-based bank had been regarded as one of the most reputable mortgage lenders until the collapse of its business model, which had relied mainly on the wholesale money markets to fund its mortgages, instead of deposits.

BBC: FSA warning on risk 'deficient'