In the United States, studies that have examined the effect of mergers and acquisitions on small business lending by other banks in the same local markets have found that other banks and new bank entrants tend to offset any reduction in the supply of credit to small businesses by the consolidating banks.
In addition, a recent study by Board staff and others suggests that earlier conclusions 2 regarding the behavior of larger banks may need some qualification. This study finds that the creation of large banks may not significantly reduce lending to small businesses.