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Research focuses on issue of loaning credit to small enterprises. Discussion of Deborah M Markley’s research “The Impact of Deregulation on Rural Commercial Credit Availability in Four New England States: Empirical Evidence and Policy Implications.”
Research results point to businesses suffering from credit problems in markets dominated by large banks compared to markets with locally based independent banks/mixed market; small firms experience more difficulty in obtaining credit. Policy solutions include 1) incentivizing small business lending both by independent and affiliated banks; 2) additional publication of information from banks to improve marketing of credit opportunities for emerging businesses; 3) consider avenues for regulators to encourage competition from independent lenders.