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| | FRB: Speech, Greenspan -- Changes in small business finance -- March 9, 1999 |
 | | Changes in financial markets are perhaps most apparent in the realignment taking place among our commercial banks. |
 | | However, studies of the dynamic effects of bank mergers and acquisitions suggest that while mergers are apt to reduce small business lending by the participants, this decline appears to be offset in part, or even in whole, by an increase in lending by other institutions in the same local market. |
 | | In the small business sector, potential impediments include: lack of market information, difficulties in assessing risk, high transactions costs for small loans, and, in rural areas, special challenges associated with geographic distance from lenders and potential markets. |
| www.federalreserve.gov /boarddocs/speeches/1999/19990309.htm (2173 words) |
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