Youth, adolescence, and maturity of banks: credit availability to small business in an era of banking consolidation
Article Abstract:
Empirical evidence indicates that lending to small businesses is negatively correlated with the age and size of banks. This observation can be gleaned from a sample of banks with less than $500 million in assets for the period 1993-1996 and which were 25 years or younger at the time. In addition, small business lending is positively correlated with higher concentration rates in urban areas but negatively correlated with higher concentration in rural areas. These empirical findings suggest that bank consolidation has significant effects on small business lending.
Publication Name: Journal of Banking & Finance
Subject: Business
ISSN: 0378-4266
Year: 1999
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How important are small banks to small business lending? New evidence from a survey of small firms
Article Abstract:
Consolidation does not appear to undermine the long-term probability of small businesses having a line of credit from banks despite the decline in the number of small banks in a particular area. An analysis of data from the 1993 National Survey of Small Business Finance supports this observation and shows that firms in areas with few small banks are not more likely to become late in repaying trade credit. In other words, the presence of small banks does not affect the probability of small firms' late repayment of trade credit or their use of bank credit lines.
Publication Name: Journal of Banking & Finance
Subject: Business
ISSN: 0378-4266
Year: 1999
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The changing structure of local credit markets: are small businesses special?
Article Abstract:
Deregulation and consolidation has led to significant changes in bank market share for small business loans and in credit markets in many countries. Dependence on local banks make small businesses more vulnerable in Italy and elsewhere.
Publication Name: Journal of Banking & Finance
Subject: Business
ISSN: 0378-4266
Year: 2001
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