Bank mergers may be hurting small businesses. A joint study by professors at the University of Miami, New York University and the federal Office of the Comptroller of the Currency says older and larger banks make fewer loans to small businesses.
New banks make proportionately more small business loans than other banks.
Evidence seems to indicate that larger banks make proportionately fewer small business loans. This has led to concern that small business borrowers will be disadvantaged by this trend. The study also states that new banks need new customers, and managers of these banks will aggressively pursue the customers for which their bank has a particular competitive advantage in serving. Copyright 1997-2001 University of Miami, All Rights Reserved. Requests for information.