Although, as I have indicated, these small banks have generally been doing quite well, some observers have expressed concern that such changes in the structure of the banking industry may adversely affect the availability of credit to small businesses. Given the importance of small businesses to all of our economies, the supply of credit to such firms deserves serious attention.
For this reason, the effect of consolidation on small business lending was a focus of the G-10 study. It has continued to be a topic of research by Board staff, and I am pleased to see that it is the subject of papers presented at this conference.