How do mergers influence small businesses?
According to a recent study through Federal Reserve & Wharton Financial Institutions Center economists, not a great deal. Their analysis revealed that acquisitions don't seem to be related with a significant reduction in small business lending through the participating banks. And in those cases wherein there is some reduction, it seems to be offset by the positive reaction of other banks in the similar local market. Most of the banks view the period instantly following a merger transaction as the most intensely competitive, as competing lenders attempt to win small business relationships away from the merging institution.