Bank consolidation and small business lending: it's not just bank size that matters

Article Abstract:

Merger activities have been found to create a significant effect on the willingness of banks to render financial loans to small business enterprises. Survey data revealed that banking institutions tend to initiate substantial changes in its loan portfolio after a merger agreement has been finalized. This may be explained by the determination of banks to offset structural alterations arising from consolidation efforts. Acquirer banks have also been shown to possess greater loan portfolio share compared to their target banks.

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Lending relationships in Germany - empirical evidence from survey data

Article Abstract:

Lending is usually centered on one or two financing institutions in the small and medium-sized sector of the Germany economy. Numerous companies, especially the smaller ones, continue exclusive lending associations, and usually one financial institution represents a minimum of two-thirds of the overall loan volume. It was found that loan volume boosts the tendency of banks to exact collateral while company size has a decreasing impact.

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Is there a tradeoff between bank competition and financial fragility?

Article Abstract:

A study of lending markets is presented with emphasis on the links between market structure, risk and social welfare. The use of a model of mean-shifting investment technologies revealed that a tradeoff between competition and fragility is not always necessary.

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