The study looked at how healthy community banks affect a country's economy. They used data from 49 nations between 1993-2000. Results showed that small, private, locally-owned banks being more efficient and having higher market shares can lead to better economic performance. This is especially true in developing countries. Foreign-owned banks can also have positive effects, while state-owned banks may have negative impacts. The study found that improved financing for small businesses and increased bank credit flows may not always be the main reasons for these economic benefits.