Universal Banking and the Future of Small Business Lending

66 Pages Posted: 11 Nov 2008

See all articles by Allen N. Berger

Allen N. Berger

University of South Carolina - Darla Moore School of Business

Gregory F. Udell

Indiana University - Kelley School of Business - Department of Finance

Date Written: 1995

Abstract

We examine the contention that as banks become larger and more organizationally complex i.e., more like universal banks they may reduce the supply of credit to small business borrowers. This would be consistent with an effort to reduce Williamson-type managerial diseconomies in providing services for large and small borrowers jointly. We investigate the empirical association of loan price and quantity with bank size and complexity, using a data set with over 900,00 bank loans. The data support the proposition that larger, more complex banks may reduce the supply of small business lending, although other institutions may replace many of these loans.

Keywords: bank, universal, loan, collateral

Suggested Citation

Berger, Allen N. and Udell, Gregory F., Universal Banking and the Future of Small Business Lending (1995). NYU Working Paper No. FIN-95-009, Available at SSRN: https://ssrn.com/abstract=1298316

Allen N. Berger (Contact Author)

University of South Carolina - Darla Moore School of Business ( email )

1014 Greene St.
Columbia, SC 29208
United States
803-576-8440 (Phone)
803-777-6876 (Fax)

Gregory F. Udell

Indiana University - Kelley School of Business - Department of Finance ( email )

1309 E. 10th St.
Bloomington, IN 47405
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
1,519
Abstract Views
5,447
rank
18,165
PlumX Metrics