Abstract
AbstractAsset size does not seem to be a good predictor of bank lending behaviours. An overlooked determinant of lending may be the relationship a bank has with its local community. This article suggests that US banks owned and headquartered in a community are typically central actors in local business networks, and bank executives are intimately connected to their communities. As a result, lending decisions made by banks headquartered in the community often become influenced by the social relations and social networks of bank executives.
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