Shared Destinies? Small Banks and Small Businesses

• 成果类型: Article; Early Access
• 署名作者: Brennecke, Claire; Jacewitz, Stefan; Pogach, Jonathan
• 署名单位: Federal Reserve System - USA; Federal Reserve Bank - Kansas City; Federal Deposit Insurance Corporation (FDIC)
• 刊物名称: REVIEW OF FINANCIAL STUDIES
• ISSN/ISSBN: 0893-9454
• DOI: 10.1093/rfs/hhaf042
• 发表日期: 2025
• 关键词: MARKET POWER; wal-mart; COMPETITION; industry; entry; rise; mergers; form

摘要

We identify a new source for the declining role of small banks in the banking industry: Long-term changes in the banking sector are partially a consequence of changes in the industrial sector. Small banks are relatively more exposed to small business shocks, because small businesses compose a larger share of their customers. Lower real-side demand for small business financial services is responsible for part of the relative decline in small banks' deposits. Rough calculations suggest that deposits at small banks would have been $280 billion higher from 2002 to 2017 if small firms had grown at the rate of larger firms.