Download or read book Banking Consolidation and the Availability of Credit to Small Businesses written by Rebel A. Cole and published by . This book was released on 2007 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: In this study, we use firm-level data from the 1993 National Survey of Small Business Finances to test the hypothesis that banking consolidation has reduced the availability of credit to small businesses. We find that banks in markets where mergers have occurred are more likely than other banks to deny credit to small business loan applicants. However, this relationship disappears after we control for characteristics of the small business firm and its principal owner, the economic environment of the market where the firm is located, and the financial condition of the prospective lender. Moreover, we find that one set of banks, those in the process of acquiring other banks, are less likely to deny credit to small businesses. These results suggest that consolidation in the banking industry may have enhanced rather than restricted the availability of credit to small businesses. However, the data reflect credit availability during 1991-94, and may not be representative of subsequent credit conditions. Nor does the analysis rule out possible changes in the terms of credit available to small businesses.
Download or read book The Effects of Bank Consolidation on Small Business Lending written by United States. Congress. House. Committee on Small Business. Subcommittee on Taxation and Finance and published by . This book was released on 1996 with total page 268 pages. Available in PDF, EPUB and Kindle. Book excerpt: Distributed to some depository libraries in microfiche.
Download or read book The Effects of Bank Consolidation and Market Entry on Small Business Lending written by Emilia Bonaccorsi di Patti and published by . This book was released on 2001 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Bank Consolidation and Lending Policies to Small Business written by Silvia Del Prete and published by . This book was released on 2007 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: Using Bank of Italy data on Italian banks in the period 1990-2004, the paper analyses the short and long-run effects of the concentration of the banking industry on the availability of credit to small and medium-sized firms. Our study employs a bank-based approach and investigates the differential effects of banking consolidation in the various geographical areas, in order to capture the influence of the different economic contexts. Our research also considers the different groups of intermediaries involved, as well as the role of new entry banks and of those not involved in consolidations (e.g. rivals). We find that banks' specialization in terms of credit policy seems to be affected by Mamp;As. On the one hand, the portion of credit allocated to small businesses decreases in the long run after mergers, which result in a more pronounced size change and a more complex organizational structure; this effect is stronger in the South and in the North East of Italy. On the other hand, in the case of acquisitions, banking groups improve their expertise in small business lending. These results hold in all the main geographical areas, except for the southern regions, where - everything being equal - small firms are riskier and banks' takeovers are motivated mainly by the need to allow financial restructuring. However, in this market, the entry of new banks and close relationships between local banks and agglomerations of small firms partly offset the lower specialization on small business financing induced by acquisitions.
Download or read book Small Business Lending and Bank Consolidation written by James Weston and published by . This book was released on 2007 with total page 6 pages. Available in PDF, EPUB and Kindle. Book excerpt: Small banks are a major source of credit for small businesses. As banking consolidation continues, will a resulting decline in the presence of small banks adversely affect the availability of that credit?
Download or read book The Impact of Bank Consolidation on Small Business Credit Availability written by Steven Gael Craig and published by . This book was released on 2004 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Bank Mergers Acquisitions written by Yakov Amihud and published by Springer Science & Business Media. This book was released on 2013-04-17 with total page 249 pages. Available in PDF, EPUB and Kindle. Book excerpt: As the financial services industry becomes increasingly international, the more narrowly defined and historically protected national financial markets become less significant. Consequently, financial institutions must achieve a critical size in order to compete. Bank Mergers & Acquisitions analyses the major issues associated with the large wave of bank mergers and acquisitions in the 1990's. While the effects of these changes have been most pronounced in the commercial banking industry, they also have a profound impact on other financial institutions: insurance firms, investment banks, and institutional investors. Bank Mergers & Acquisitions is divided into three major sections: A general and theoretical background to the topic of bank mergers and acquisitions; the effect of bank mergers on efficiency and shareholders' wealth; and regulatory and legal issues associated with mergers of financial institutions. It brings together contributions from leading scholars and high-level practitioners in economics, finance and law.
Download or read book Recent Trends in Bank Consolidation and Interstate Mega mergers written by United States. Congress. House. Committee on Banking and Financial Services. Subcommittee on Financial Institutions and Consumer Credit and published by . This book was released on 1996 with total page 296 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Youth Adolescence and Maturity of Banks written by Robert DeYoung and published by . This book was released on 1997 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper addresses the relationship between the aging process at new and relatively young banks and the tendency of banks to make loons to small businesses. Defining small business loans as C & I loans that are under $1 million insize, we analyze a sample of banks that had assets of less than $500 million in assets for the years 1993-1996 and that were 25 years of age or younger. We find, as have earlier studies, that banks' proclivities for small business lending are negatively related to their age and to their size. We proceed much farther, however, by introducing a number of additional explanatory variables. We find that small business lending is negatively related to the number of a bank's branches, to its recent growth rate, and to a bank's being part of a MBHC. Also, small business lending is positively related to higher concentration rates in urban areas but is negatively related to higher concentration in rural areas. Despite the inclusion of these additional variables, the negative effects of a bank's age on its small business lending persist, albeit with reduced magnitudes. We also examine sub-samples of our data. When only "young" banks (ten years old or less) are considered, the inclusion of the additional variables causes the effects of age to disappear for freestanding (independent and OBHC) banks; and when only MBHC banks considered, age disappears as a significant influence.
Download or read book The Impact of Banking Restructuring Proposals on Small Businesses Access to Credit written by United States. Congress. House. Committee on Small Business. Subcommittee on Antitrust, Impact of Deregulation, and Privatization and published by . This book was released on 1991 with total page 260 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Securitization of Small Business Loans written by Christopher Beshouri and published by . This book was released on 1994 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Small Business Credit Availability written by Joe Peek and published by . This book was released on 1995 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Bank Consolidation and the Provision of Banking Services written by Katherine Samolyk and published by . This book was released on 2002 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines how bank small business lending in local markets was related to bank merger activity during the mid-1990s. The authors use deposit data reported at the branch level to impute the distribution of bank small business loans across urban and rural markets; they then study the link between various types of merger activity and the growth of small business lending in the local market. Multivariate tests indicate that bank consolidation is more broadly linked to lower estimated loan growth in rural markets than in urban ones. However, there is also evidence of lower small business loan growth in concentrated urban markets that are experiencing within-market merger activity. And, consistent with bank-level research, bank consolidation mainly involving mergers between smaller banks tends to be associated with greater small business credit availability in local banking markets. Finally, the authors validate their empirical strategy by comparing their geographic loan estimates to geographic loan originations reported since 1996 by larger institutions under the auspices of the Community Reinvestment Act.
Download or read book Bank Consolidation and Small Business Lending within Local Markets written by Katherine Samolyk and published by . This book was released on 2014 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper uses the relatively new CRA small business loan data to examine how bank consolidation has been related to small business lending within a bank's local community - particularly to borrowers having more modest economic prospects, such as very small businesses or those located in low- and moderate-income areas. The results of multivariate tests indicate that during the late 1990s, banks experiencing merger activity- including banks that did not themselves merge but were part of active holding companies - had systematically lower small business loan growth than inactive banks. But, the effects appear to reflect a general decline in small business lending rather than a shift away from lending to lower- income areas or to very small businesses. At the local level, merger-related effects are more pronounced when the merger activity increases the local market share of the surviving bank or its parent holding company. Thus, our results indicate that, at least in terms of the quantity of credit, the effects of bank consolidation do not appear to fall disproportionately on the businesses having more modest prospects. On the other hand, the market-level analysis indicates that standard antitrust concerns about the provision of local banking services still seem to apply in small business credit markets.
Download or read book Small Business Credit Availability and Relationship Lending written by Allen N. Berger and published by . This book was released on 2014 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper models the inner workings of relationship lending, the implications for bank organizational structure, and the effects of shocks to the economic environment on the availability of relationship credit to small businesses. Relationship lending depends on the accumulation over time by the loan officer of quot;softquot; information. Because the loan officer is the repository of this soft information, agency problems are created throughout the organization that are best resolved by structuring the bank as a small, closely-held organization with few managerial layers. The shocks analyzed include technological innovations, regulatory regime shifts, banking industry consolidation, and monetary policy shocks.
Download or read book Youth Adolescence and Maturity of Banks written by Robert DeYoung and published by . This book was released on 2008 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper address the relationship between the aging process at new and relatively young banks and the tendency of banks to make loans to small businesses. Defining small business loans as Camp;I loans that are under $1 million in size, we analyze a sample of banks that had assets of less than %500 million in assets for the years 1993-1996 and that were 25 years of age or younger.
Download or read book Banking Consolidation and Small Businessfinance written by Katharina Marsch and published by . This book was released on 2016 with total page 40 pages. Available in PDF, EPUB and Kindle. Book excerpt: Since the early 1990s an unprecedented process of consolidation has taken place in the banking sector in most industrialised countries raising concern of policymakers that it may reduce access to credit for the small business sector. While most of the existing empirical studies have focused on the U.S., this paper is the first one empirically investigating the effects of banking consolidation in Germany. As small and medium sized German companies traditionally almost exclusively rely on bank credit and as they represent the vast majority of the corporate sector reduced credit availability for those companies could particularly endanger economic growth. Based on an exceptional panel dataset comprising merged data of the German credit register and balance sheet data of German firms and banks we find - contrary to public fear - that the ongoing banking consolidation in Germany does not have a significant negative impact on the financing of small and medium-sized enterprises (SME). We measure the financing opportunities of SMEs based on the bank debt/assets ratio and the logarithmized credit size and control both explicitly for bank mergers and for the increase in the average bank size in the course of the consolidation process. In addition, we observe that the concentration in the banking market is insignificant for SME financing and that there is no significant difference between commercial banks, savings banks and private banks.
