One of the reasons why the banking relationship is so important to small business finance is that banks can efficiently gain valuable information on a small business over the course of their relationship, and then use this information to help make pricing and credit decisions.
Ben S Bernanke: The importance of financial education and the National $ coalition survey Speech by Mr Ben S Bernanke, Chairman of the Board of Governors of the US Federal Reserve System, at the $ Coalition for Personal Financial Literacy and Federal Reserve Board Joint News Conference, Federal Reserve Board, Washington DC, 9 April 2008. *  *  *  Good morning.