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Changes in the Banking System and Small Business Lending

Onji, Kazuki; Vera, David

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Since small businesses typically rely on small banks as their primary source of financing, there are concerns that the wave of bank consolidation of the 1990s may have reduced the availability of loans to small businesses in the US. Using a panel of state-level banking information over 1993-2002, this paper shows that the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 reduced the number of small banks, but not the amount of small business lending. We also show that small...[Show more]

dc.contributor.authorOnji, Kazuki
dc.contributor.authorVera, David
dc.date.accessioned2015-12-10T22:13:40Z
dc.identifier.issn0921-898X
dc.identifier.urihttp://hdl.handle.net/1885/49848
dc.description.abstractSince small businesses typically rely on small banks as their primary source of financing, there are concerns that the wave of bank consolidation of the 1990s may have reduced the availability of loans to small businesses in the US. Using a panel of state-level banking information over 1993-2002, this paper shows that the Riegle-Neal Interstate Banking and Branching Efficiency Act of 1994 reduced the number of small banks, but not the amount of small business lending. We also show that small banks are participating less in small business lending. These results imply that the bank-lending channel of the monetary transmission mechanism became less important in the US in the late 1990s as a result of more firms borrowing from large banks that are less sensitive to monetary shocks.
dc.publisherKluwer Academic Publishers
dc.sourceSmall Business Economics
dc.subjectKeywords: Bank lending; Panel data
dc.titleChanges in the Banking System and Small Business Lending
dc.typeJournal article
local.description.notesImported from ARIES
local.identifier.citationvolume34
dc.date.issued2008
local.identifier.absfor150203 - Financial Institutions (incl. Banking)
local.identifier.ariespublicationu4055784xPUB193
local.type.statusPublished Version
local.contributor.affiliationOnji, Kazuki, College of Asia and the Pacific, ANU
local.contributor.affiliationVera, David, Kent State University
local.description.embargo2037-12-31
local.bibliographicCitation.issue3
local.bibliographicCitation.startpage293
local.bibliographicCitation.lastpage308
local.identifier.doi10.1007/s11187-008-9119-9
dc.date.updated2016-02-24T10:32:59Z
local.identifier.scopusID2-s2.0-77952012103
CollectionsANU Research Publications

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