BIS Review 21/2007  1  In contrast, larger banks tend to have a comparative advantage with larger, more mature firms for whom quantitative, or “hard,” information, such as longer, more-detailed credit histories, is relatively easy to obtain (Petersen and Rajan, 1994). The distinction between community banks and large banks, however, is clearly changing.
It is by focusing on these comparative advantages that we can best build a strong and successful manufacturing sector, while at the same time living with a high exchange rate. BIS central bankers’ speeches  3  Graph 3  I would now like to turn to the second broad factor that has helped maintain domestic balance during the once-in-a-century investment boom.