scholarly journals Effects of Regional Bank Merger on Small Business Borrowing: Evidence from Japan

2015 ◽  
Vol 7 (11) ◽  
pp. 62
Author(s):  
Hironobu Miyazaki ◽  
Hiroyuki Aman
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Economies Of Scale ◽  
Loan Portfolio ◽  
Small Business Lending ◽  
Borrowing Costs ◽  
Bank Merger ◽  
Regional Bank ◽  
Small Business Loans ◽  
The Impact

This study examines the impact of a regional bank merger in Japan on borrowing by small businesses, focusing on firms that borrow from the acquiring bank, the acquired bank, or both. First, we find that post-merger borrowing costs declined. This result suggests that small borrowers enjoy more favorable post-merger financing conditions because efficiencies from economies of scale lead to lower costs. Second, we<strong> </strong>find that post-merger borrowing costs decline for firms that borrow only from the acquiring or acquired bank, whereas they did not decline for firms that borrow from both. Third, we find that only small business loans to firms that borrow from both the acquiring and acquired banks decrease post-merger. This result suggests that small business lending might decline because of a merged bank’s loan portfolio and lending strategy.

scholarly journals The Impact of the Small Business Lending Fund on Community Bank Lending to Small Businesses

2017 ◽  
Vol 46 (2) ◽  
pp. 307-328 ◽  
Author(s):  
Dean Amel ◽  
Traci Mach
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Bank Lending ◽  
Small Business Lending ◽  
Community Bank ◽  
The Impact

scholarly journals Communication within Banking Organizations and Small Business Lending

2020 ◽  
Vol 33 (12) ◽  
pp. 5750-5783
Author(s):  
Ross Levine ◽  
Chen Lin ◽  
Qilin Peng ◽  
Wensi Xie
Keyword(s):  
Small Business ◽  
Travel Time ◽  
Small Firm ◽  
Soft Information ◽  
Travel Times ◽  
Small Business Lending ◽  
Communication Costs ◽  
Small Business Loans ◽  
The Impact

Abstract We investigate how communication within banks affects small business lending. Using travel times between a bank’s headquarters and its branches to proxy for the costs of communicating soft information, we exploit shocks to these travel times—the introduction of new airline routes—to evaluate the impact of within-bank communication costs on small business loans. We find that reducing headquarters-branch travel time boosts small business lending in the branch’s county. Several extensions suggest that new airline routes facilitate in-person communications that boost small-firm lending.

scholarly journals Have Stress Tests Impacted Small-Business Lending?

2019 ◽  
pp. 1-6
Author(s):  
Yuliya Demyanyk
Keyword(s):  
Small Business ◽  
Federal Reserve ◽  
Small Businesses ◽  
Banking System ◽  
Economic Conditions ◽  
Bank Holding Companies ◽  
Stress Tests ◽  
Small Business Lending ◽  
Holding Companies ◽  
The Impact

The Federal Reserve conducts stress tests of the largest bank holding companies to ensure that the banking system has sufficient capital to stay financially sound in the event of worsening economic conditions. Some groups have raised concerns that the stress tests will reduce lending to small businesses. This article describes recent research investigating the impact of the stress tests on small-business lending. It finds that the banks that are most affected by stress tests have reduced their small-business credit, but aggregate credit to small businesses has not fallen.

scholarly journals Impact of Bank Closings on Credit Extension to Businesses in Low-Income and Minority Neighborhoods

2019 ◽  
Vol 47 (1) ◽  
pp. 20-49
Author(s):  
Maude Toussaint-Comeau ◽  
Yi David Wang ◽  
Robin Newberger
Keyword(s):  
Small Business ◽  
Low Income ◽  
Small Businesses ◽  
Bank Failures ◽  
Small Community ◽  
Community Banks ◽  
Small Business Lending ◽  
Local Areas ◽  
New Research ◽  
The Impact

New research is surfacing since the last financial crisis, not only to help predict risks associated with bank failures but also to assess the impact of bank failures on the economy and local geographies. However, although bank failures occurred mostly among small (community) banks, much less is understood regarding how the closing of mission-oriented community banks, or minority-owned banks, affect traditionally underserved markets, areas such failed banks were designed to serve. We conduct an empirical investigation testing the effects of bank closings on local areas. We find that, as a result of bank closings, there are significant frictions with small businesses obtaining credit, which appear to be potent enough to cause cumulative declines in aggregate small business lending in neighborhoods, lasting up to 3 years. We also find evidence that such lending shocks have repercussions on small business growth. We find that the closing of large banks also has an impact on small business lending, consistent with previous research, which has shown that as small businesses lose credit from large banks, they are not able to switch easily to other banks, leading to a decline in aggregate lending in local areas. We find this to be true for low- or moderate-income (LMI) and minority businesses/neighborhoods. We also find that the failure of community development financial institutions (CDFIs) and minority depository institutions (MDIs) leaves a credit void that may not automatically be filled in LMI and minority neighborhoods.

The Spillover Effect of Consolidating Securitization Entities on Small Business Lending

2020 ◽  
Author(s):  
Yiwei Dou
Keyword(s):  
United States ◽  
Risk Management ◽  
Small Business ◽  
Small Businesses ◽  
Spillover Effect ◽  
The United States ◽  
Small Business Lending ◽  
Loan Portfolios ◽  
Positive Performance ◽  
Small Business Loans

I investigate how the consolidation of securitization entities under SFAS 166 and 167 spills over to banks' supply of small business loans, which are rarely securitized in the United States. This spillover operates through two channels. (1) In the leverage channel, consolidating banks downsize their entire loan portfolios, both small business loans and other loans, in response to increased leverage after consolidation. (2) In the risk management channel, consolidating banks adjust the mix of loans to maintain optimal diversification. The adjustment can increase the supply of small business loans when their performance covaries positively with the performance of other loans. I find that on average, banks that consolidate more securitized assets reduce small business lending; consequently, counties with a greater market share of consolidating banks experience slower growth in small businesses. I also identify a small group of banks with sufficiently large positive performance covariance that increase small business lending.

scholarly journals The Impact of the Small Business Lending Fund on Community Bank Lending to Small Businesses

2014 ◽  
Vol 2014 (111) ◽  
pp. 1-19
Author(s):  
Dean F. Amel ◽  
◽  
Traci L. Mach
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Bank Lending ◽  
Small Business Lending ◽  
Community Bank ◽  
The Impact

Assessment of small businesses activities in Ukraine

2019 ◽  
pp. 40-47
Author(s):  
Igor Ponomarenko ◽  
Kateryna Volovnenko
Keyword(s):  
Comparative Analysis ◽  
Statistical Analysis ◽  
Small Business ◽  
Small Businesses ◽  
Government Agencies ◽  
Small Enterprises ◽  
The Subject ◽  
Business Entities ◽  
The Impact ◽  
Micro Enterprises

The subject of the research is a set of approaches to the statistical analysis ofthe activities of small business entities in Ukraine, including micro-enterprises. The purpose of writing this article is to study of the features of functioningof small business entities in Ukraine. Methodology. The research methodology isto use a system-structural and comparative analysis (to study the change in thenumber of small enterprises by major components); monographic (when studyingmethods of statistical analysis of small businesses); economic analysis (when assessing the impact of small business entities on socio-economic phenomena andprocesses in Ukraine). The scientific novelty consists to determine the features ofthe functioning of small businesses in Ukraine in modern conditions. The influenceof the activities of the main socio-economic and political indicators on the activities of small enterprises in recent periods of time has been identified. It has beenestablished that there is flexibility in the development of strategies by small businesses in conditions of significant competition, which makes it possible to quicklyrespond to changing situations in specific markets. Conclusions. The use of acomprehensive statistical analysis of small businesses functioning in Ukraine willallow government agencies to develop a set of measures to optimize the activitiesof these enterprises, which ultimately will positively affect the strengthening oftheir competitiveness and will contribute to the growth of the national economicsystem.

FEATURES OF THE RUSSIAN SMALL BUSINESS MODEL AND THE CONSEQUENCES OF THE COVID-19 PANDEMIC

2021 ◽  
pp. 71-85
Author(s):  
Natal’ya E. Egorova ◽  
Keyword(s):  
Small Business ◽  
Business Model ◽  
Small Businesses ◽  
Structural Characteristics ◽  
Bank Lending ◽  
Structural Instability ◽  
Government Support ◽  
Negative Consequences ◽  
Development Levels ◽  
The Impact

The article analyzes the quantitative and structural stability of Russian small business and identifies the model features of its functioning. It investigates the dynamics of development of Russian small business is investigated and notes a downward trend in the number of small and medium-sized enterprises over the past two years. A conclusion is drawn that the quantitative indicators reflecting its functioning are highly sensitive to the negative effects of the macroeconomic environment. The author introduces a concept of the small business heterogeneity and brings up its structural characteristics, represented by various categories of small and medium-sized firms. Comparative analysis of the Russian small business model with foreign small business confirms its quantitative and structural instability. That makes the considered sector of the national economy vulnerable to shocks (externalities), including the COVID-19 pandemic. It is assumed that the negative consequences of the pandemic will affect Russian small businesses more than foreign ones, and the gap in their development levels will widen. An assessment of the impact of the COVID-19 pandemic on Russian small business and a forecast of its development are made in the context of limited government support and the absence of active bank lending.

scholarly journals The Impact of Peer-to-Peer Lending on Small Business Loans

2020 ◽  
Author(s):  
Jin-Hyuk Kim ◽  
Frank Stähler
Keyword(s):  
Small Business ◽  
Peer To Peer ◽  
Peer Lending ◽  
Small Business Loans ◽  
The Impact
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