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Banking industry's consolidation: what's a small business to do?

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  • Loretta J. Mester

Abstract

Relaxation of the rules governing where banks can expand and new technologies for providing banking services have contributed to rapid consolidation in the industry. In addition, the number of commercial banks in the United States has been shrinking, and banks have been getting larger. Should we be worried that consolidation will lead to a contraction of credit to small businesses? Read what Loretta Mester has to say on the subject in this article

Suggested Citation

  • Loretta J. Mester, 1999. "Banking industry's consolidation: what's a small business to do?," Business Review, Federal Reserve Bank of Philadelphia, issue Jan, pages 3-16.
  • Handle: RePEc:fip:fedpbr:y:1999:i:jan:p:3-16
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    References listed on IDEAS

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    3. Hughes, Joseph P. & Lang, William W. & Mester, Loretta J. & Moon, Choon-Geol, 1999. "The dollars and sense of bank consolidation," Journal of Banking & Finance, Elsevier, vol. 23(2-4), pages 291-324, February.
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    11. DeYoung, Robert & Goldberg, Lawrence G. & White, Lawrence J., 1999. "Youth, adolescence, and maturity of banks: Credit availability to small business in an era of banking consolidation," Journal of Banking & Finance, Elsevier, vol. 23(2-4), pages 463-492, February.
    12. Leonard I. Nakamura, 1994. "Small borrowers and the survival of the small bank: is mouse bank Mighty or Mickey?," Business Review, Federal Reserve Bank of Philadelphia, issue Nov, pages 3-15.
    13. Rebel A. Cole & Lawrence G. Goldberg & Lawrence J. White, 1997. "Cookie-Cutter versus Character: The Micro Structure of Small Business Lending by Large and Small Banks," New York University, Leonard N. Stern School Finance Department Working Paper Seires 98-022, New York University, Leonard N. Stern School of Business-.
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    16. Loretta J. Mester, 1997. "What's the point of credit scoring?," Business Review, Federal Reserve Bank of Philadelphia, issue Sep, pages 3-16.
    17. Mark E. Levonian, 1997. "Changes in small business lending in the West," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue jan24.
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    Cited by:

    1. Mester, Loretta J. & Hughes, Joseph P. & Jagtiani, Julapa, 2016. "Is Bigger Necessarily Better in Community Banking?," Working Paper 1615, Federal Reserve Bank of Cleveland.
    2. Jessica A. Holmes & Jonathan T. Isham & Paul M. Sommers, 2007. "Is George Bailey Dead?," Applied Financial Economics Letters, Taylor and Francis Journals, vol. 3(1), pages 19-24, January.
    3. David Carter & James McNulty & James Verbrugge, 2004. "Do Small Banks have an Advantage in Lending? An Examination of Risk-Adjusted Yields on Business Loans at Large and Small Banks," Journal of Financial Services Research, Springer;Western Finance Association, vol. 25(2), pages 233-252, April.

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    Keywords

    Bank mergers ; Small business;

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