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

2014 ◽  
Author(s):  
Dean F. Amel ◽  
Traci Mach
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Bank Lending ◽  
Small Business Lending ◽  
Community Bank ◽  
The Impact

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.

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 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.

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.

Small Business Lending

2019 ◽  
pp. 430-469
Author(s):  
Allen N. Berger ◽  
Lamont K. Black
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Technological Progress ◽  
Global Financial Crisis ◽  
Bank Lending ◽  
Relationship Lending ◽  
Small Business Lending ◽  
Credit Supply ◽  
The Global Financial Crisis ◽  
Lending Technologies

Small businesses are engines of economic growth that are fueled in large part by bank lending. We examine the roles of technology and regulation in the supply of small business credit. Technological changes increase small business credit supply through the adoption of new hard-information-based lending technologies, such as FinTech lending, as well as by improving existing lending technologies. Technological progress has more modest effects on the processing and transmission of soft information used in relationship lending. Regulatory changes, such as pre-crisis deregulation and post-crisis reregulation, directly affect bank small business lending. The combination of technological progress and geographical deregulation also has resulted in more bank consolidation and competition, both of which have mixed effects on small business credit supply. Lastly, we cover the challenges and mitigating factors in explaining the dramatic drop in small business credit availability during the Global Financial Crisis and the very slow growth during the subsequent recovery.

scholarly journals Why Small Business Lending Isn’t What It Used to Be

2013 ◽  
pp. 1-4 ◽  
Author(s):  
Ann Marie Wiersch ◽  
Scott Shane
Keyword(s):  
Small Business ◽  
Great Recession ◽  
Small Businesses ◽  
Bank Lending ◽  
Single Factor ◽  
Multiple Sources ◽  
Small Business Lending ◽  
The Great Recession ◽  
The Many ◽  
Take All

Since the Great Recession, bank lending to small businesses has fallen significantly, and policymakers have become concerned that these businesses are not getting the credit they need. Many reasons have been suggested for the decline. Our analysis shows that it has multiple sources, which means that trying to address any single factor may be ineffective or make matters worse. Any intervention should take all of the many causes of the decline in small business lending into consideration.

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.

SMALL BUSINESS AS A BASIS FOR LOGISTIC BARTER

2020 ◽  
Vol 10 (10) ◽  
pp. 2293-2300
Author(s):  
L.V. Gabdullin ◽  
Keyword(s):  
Small Business ◽  
Small Businesses ◽  
Perfect Competition ◽  
Competitive Environment ◽  
Federal Law ◽  
Antitrust Laws ◽  
Monetary Relations ◽  
Business Conditions ◽  
Main Thing ◽  
The Impact

The article analyzes the development of small business using the example of that one in Naberezhnye Chelny. A competitive market is influenced by many factors. These are laws, state policy in the field of small business in the construction sector, as exemplified in this article, a competitive environment. The article presents the impact of Federal Law No. 135 “On Protection of Competition” on the competitive environment, including in construction. In our country,a lot is said about supporting small businesses, there are federal and regional programs. There is also an understanding of what kind of small business it is and what it is for. There are many definitions of small business. Each country has certain criteria for evaluating small businesses. The main thing is that the goal of small business is to increase jobs, and not just to employ people, but to increase the country’s human resources. It should be borne in mind that small businesses respond more quickly to local business conditions. The novelty of the research is that an important point of small business is the creation of a market close to perfect competition, and this is the basis of the concept of logistics barter, which will dominate the economy. The new concept of logistic barter involves the denial of monetary relations between manufacturers in the B2B segment. The B2C segment is not interesting for logistic barter. The money will remain in “households” who care about the market with ideally perfect competition. A market of perfect competition and antitrust laws will work in tandem. Banks will be relevant only for end consumers, namely “households”.

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