Comment on Jayaratne and Wolken

Article Abstract:

Empirical evidence shows that bank consolidation does not affect small firms' access to credit despite the reduction in the number of small banks in a particular area. According to the results of the 1993 National Survey of Small Firm Finance, the level of small banks has no impact on the use of credit lines by small businesses, suggesting that in the long run supply and demand will even out. There are, however, short-term disruptions in the supply of capital to small businesses such that the shrinkage in the number of small banks results in a corresponding decrease in lines of credit.

Commercial Banks, Commercial Banking, Small Business, Acquisitions & Mergers Analysis, Business Financing, Bank Loanable Funds, Banking industry, Mergers, acquisitions and divestments, Acquisitions and mergers, Bank mergers, Financial analysis, Commercial loans, Loanable funds (Banks)

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The present and future roles of banks in small business finance

Article Abstract:

Small businesses have a tendency to rely on banks for financial services with their future relationships likely to follow the same pattern despite institutional and technological changes. Relationships between banks and firms remain an important factor in distributing financial services but questions on their structure remain as technological and institutional changes are continuously evolving.

Business budgets

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