That is why SME lending is currently highly concentrated among a handful of large banks that have the scale and capacity to diversify idiosyncratic risks by investing or lending to a broad enough range of SMEs. In other words, SMEs will remain largely dependent on a subset of banks for the foreseeable future.
With its study of LTCM behind it, the President’s Working Group released a long-awaited report that evaluates the regulatory framework for over-the-counter derivatives.