The effects of dynamic changes in bank competition on the supply of small business credit

Allen Berger (), Lawrence G. Goldberg and Lawrence White

No 2001-35, Finance and Economics Discussion Series from Board of Governors of the Federal Reserve System (U.S.)

Abstract: We study the effects of structural changes in banking markets on the supply of credit to small businesses. Specifically, we examine whether bank mergers and acquisitions (M&As) and entry have \"external\" effects on small business loans by other banks in the same local markets. The results suggest modest positive external effects from these dynamic changes in competition, except that large banks may reduce small business lending in reaction to entry. We confirm bank size and age as important determinants of this lending, and show that the measured age effect does not appear to be driven by local market M&A activity.

Keywords: Small business; Bank mergers; Bank loans (search for similar items in EconPapers)
Date: 2001
New Economics Papers: this item is included in nep-mfd and nep-mic
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Citations: View citations in EconPapers (62)

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Related works:
Working Paper: The Effects of Dynamic Change in Bank Competition on the Supply of Small Business Credit (2001)
Working Paper: The Effects of Dynamic Changes in Bank Competition on the Supply of Small Business Credit (2001)
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