Do Bank Regulatory Practices Stifle Lending to Small Businesses?
Nov15

Do Bank Regulatory Practices Stifle Lending to Small Businesses?

In a newly released working paper entitled, Commercial Lending Concentration and Bank Expertise: Evidence from Borrower Financial Statements, Andrew Sutherland, Assistant Professor at MIT Sloan, and colleagues studied banks—including eight of the ten largest commercial and industrial lenders—and their lending practices to small firms. Their study finds that banks generally require fewer audits from firms in their largest exposures,...

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