There is, of course, a strong connection between our banking structure and the nature of BIS Review 36/1997  -2-  our small-business-oriented economy. Smaller banks traditionally have been the source of capital for small businesses that do not generally have access to securities markets.
In turn, small, new businesses, often employing new technology, account for much of the growth in employment in our economy. The new firms come into existence often to replace old firms that were not willing or able to take on the risks associated with high-growth strategies.