> the nation’s four largest banks ... only loaned 1.9% of their combined assets to small businesses compared to 10.6% for small and medium size banks.
I'm a supporter of local business for social and heterocultural reasons, but this statistic isn't useful in its current form.
Big businesses will necessarily go to large bank for their financing needs. So small and medium banks are cut out of that market (which I'll bet they'd love a part of!).
Also, 1.9% of a very very large number is not necessarily less than 10.6% of a smaller number.
Furthermore, a better question might be: how many local businesses met their financing needs at each class of bank? Big banks have small branches that do regionally appropriate loans.
But the persuasive angle for me is more about reinvestment. All else being equal, I'd prefer that interest on local loans was reinvested locally.
I'm a supporter of local business for social and heterocultural reasons, but this statistic isn't useful in its current form.
Big businesses will necessarily go to large bank for their financing needs. So small and medium banks are cut out of that market (which I'll bet they'd love a part of!).
Also, 1.9% of a very very large number is not necessarily less than 10.6% of a smaller number.
Furthermore, a better question might be: how many local businesses met their financing needs at each class of bank? Big banks have small branches that do regionally appropriate loans.
But the persuasive angle for me is more about reinvestment. All else being equal, I'd prefer that interest on local loans was reinvested locally.