Why does community need so many banks?

Can someone please tell me why we need all of these new banks in such a poor economy with a population of only 6,000 to 7,000 people? Bank P has 3 branches including that three story, one city block building, that looks totally out of place in this area. The Bank MW has 3 branches in our area with a brand new multi-story bank that just recently opened. In my eyes a very ugly building. Who pays for all of these new banks? Are the Fed's going to bail these banks out of trouble if and when necessary which is almost a for sure scenario as they have on Wall Street and elsewhere across the country? Would not all of that money spent on new buildings been put to better use in our community and have those banks stay with one office such as Wells Fargo, Bank of America, and US Bank which are very small banks, I realize, compared to Bank P and Bank MW.

LEN GOLDING

Sagle