|Since the financial crisis occurred in 1997, the domestic bank industry was restructured by liquidating the financially poor local banks or had difficulties in merger and acquisiton between banks In particular, among about 10 local banks, local banks were merged into the mega banks: Chungchung bank into Hana bank and Gyeonggi bank into Hanmi bank in 1997; Chungbuk bank and Gangwon bank into Chohung bank in 1999; and Gwangju bank and Kyungnam bank into Wuri bank, and Jeju bank into Shinhan bank in 2001. After merger and acquisition, there remained only three local banks which are independently operated: Daegu bank, Busan bank and Chunbuk bank. To strength a local bank`s competitiveness, the local banks should establish more local bank branches which enable to enhance accessibility to the bank and employ bank staff who can provide more kind response to customers and differentiated bank services from the mega banks. Due to IMF, the bank has been downsized, which leads to the decrease of the number of bank employees. As a result, the quality of bank services has been worsened. Furthermore, since customers use information technologies (e.g., CD/ATM, internet/mobile banking), they do not need to visit the physical banks. Such bank technologies keep the customers from providing the tailor-made bank services offline. To provide the local banks` services differentiated from those of the mega banks, it is required to investigate how bank technologies (i.e., Internet banking) used in the local banks can affect the quality of offline bank services provided by the bank employees (e.g., face-to-face) and assess the customers` satisfaction with online and offline local bank services. The purpose of this study is to examine the structural relationships between the quality of bank service, bank-usage satisfaction and bank loyalty, and to test whether there is a transfer effect from bank web-usage satisfaction to offline bank-usage satisfaction. Furthermore, x2 difference test was undertaken o determine the best model among competing models. The questionnaires were distributed to customers who visited the Daegu Bank and were questioned whether to have used its website. The self-administerd survey was undertaken against 350 respondents who visited the bank as well as used its website. A total of 340 responses were collected. Excluding missing data, 323 usable data were used for analysis. Results from this study are as follows: First, it is found that three antecedents of bank service quality such as tangibles, assurance and responsiveness positively affect bank-usage satisfaction, whereas it is revealed that reliability and empathy factors did not influence bank-usage satisfacton; second, web-usage satisfaction positively exerts an effect on offline bank-usage satisfaction, as a result, it is empirically identified that satisfaction transfer from online to offline; third, bank-usage satisfaction positively influences bank loyalty; and fourth, it is found that assurance and reliability factors had a direct positive effect on bank loyalty as a result of sequential x2 difference test. The theoretical and practical implications, and the limitations are discussed.