Keywords: Bank, mergers, small business lending
Abstract: We examine the effects of over 6,000 M&As involving more than 10,000
banks on small business lending. We are the first to decompose the
impact of M&As into static effects associated with a simple melding of
the antecedent institutions and dynamic effects associated with
post-M&A refocusing of the consolidated institution. We are also the
first to estimate the reactions of other local banks to M&As. We find
that the static effects that reduce small business lending are mostly
offset by the reactions of other banks and, in some cases, also by the
refocused efforts of the consolidating institutions themselves.
Full paper (678 KB PDF)
| Full paper (1202 KB Postscript)
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Last update: July 16, 1997