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Small business loans and small bank health

Author

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  • Elizabeth Laderman

Abstract

Total business loans under $1 million held by small U.S. banks continue to dwindle. Disproportionate negative growth at financially weak small banks has been an important factor in this decline. Loan volumes at strong small banks actually grew in 2011. The finding supports the view that supply conditions, not just tepid demand for credit, have affected bank lending to small businesses.

Suggested Citation

  • Elizabeth Laderman, 2012. "Small business loans and small bank health," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue aug27.
  • Handle: RePEc:fip:fedfel:y:2012:i:aug27:n:2012-26
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    Keywords

    Small business ; Small business - Finance;

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