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Please use this identifier to cite or link to this item: http://hdl.handle.net/2451/26672

Title: The Effects of Bank Mergers and Acquisitions on Small Business Lending
Authors: Berger, Allen N.
Saunders, Anthony
Scalise, Joseph M.
Udell, Gregory F.
Issue Date: Mar-1997
Series/Report no.: FIN-97-001
Abstract: We examine the effects of bank M&As on small business lending. Our methodology permits empirical analysis of the vast majority of U.S. bank M&As since the late 1970s -- over 6,000 M&As involving over 10,000 banks (some active banks are counted multiple times). We are the first to decompose the impact of M&As on small business lending 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 banks in local markets to M&As. We find that the static effects of consolidation which reduce small business lending are mostly offset by the reactions of other banks in the amrket, and in some cases also by refocusing efforts of the consolidating institutions themselves.
URI: http://hdl.handle.net/2451/26672
Appears in Collections:Finance Working Papers

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