September 5, 2012

How Are the Big Banks Doing In Their Commitment to Increase Small Business Lending

Last September in Cleveland, 13 of the nation’s largest banks stood beside Vice President Joseph R. Biden Jr., and Karen Mills, chief of the Small Business Administration, and announced a commitment to increase small-business lending by $20 billion over the following three years.

 

In order to check in to see how the banks are doing with their commitment, we dug into the FDIC call reports, where the banks' self-reported data for loans with a balance of $1 million or less. So for the purpose of tracking the commitment, we looked at these numbers as of June 30, 2011 (the last reporting period before the commitment was made) and compared them to June 30, 2012 (the most current data available).

 

Here are the results.

Bank Holding Company

$ Change (2012 - 2011)

% Change

Citigroup Inc.

$1,414,751,000

18.34%

PNC Financial Services Group, Inc.,

$1,012,638,000

10.51%

U.S. Bancorp

$630,864,000

4.31%

JPMorgan Chase & Co.

$597,418,000

2.44%

Huntington Bancshares Incorporated

$218,630,000

5.78%

KeyCorp

-$161,411,000

-4.71%

Bank of America Corporation

-$569,222,000

-1.79%

UK Financial Investments Ltd.  (Citizens Financial Group)

-$395,736,000

-10.88%

M&T Bank Corporation

-$310,044,000

-5.25%

Toronto-Dominion Bank, The

-$467,287,000

-6.89%

Regions Financial Corporation

-$812,406,000

-9.53%

SunTrust Banks, Inc.

-$842,006,000

-11.87%

Wells Fargo & Company

-$2,304,892,000

-6.03%

   

 

Total

-$1,988,703,000

-1.20%

4 Responses to “How Are the Big Banks Doing In Their Commitment to Increase Small Business Lending”

    Greg Lovell said...

    I have been following your information. I support your position that the big banks really are not the main driver of small business loans. FDIC just published there report on examinations of small banks and it contained an interesting kernal of information. Based upon FDIC information they say banks under $1Billion in assets hold 11% of the deposit base but provide 37% of the loans to small business.

    September 7, 2012
    Paul said...

    I work for one of the large banks and underwriting is very tight. We are turning away a lot of applicants. Three things need to be done for this to change: 1-Someone somewhere is going to have to address reducing banks’ risk exposure to losses on defaulted lending. Unfortunately someone is going to have to allow for this risk to take place to get the economic development engine going again. Managament is too focused on the bottom line impact. 2-I think that the credit bureau scoring methodolgy and recordkeeping is horrible and should be scrapped and replaced by some other means of identifying credit worthiness. 3- Last but not least the Fed Reserve need to loosen up liquidity to encourage more lending.

    September 7, 2012
    Rebel said...

    Did you adjust for mergers?

    This could simply be “new to you” loans that were already on the books of an acquired bank.

    In other words, did Citi make new small biz loans or did it buy a small biz lender?

    If the latter, then no new small biz loans were actually made.

    September 13, 2012
    John Watson said...

    Just a bit of information that might be helpful to those who are interested in getting an SBA Loan. I have had quite a lot of success myself with this software program that prepares the sba loan package for the lender. It has lender connections and also a business plan maker included in it. It really does everything. If anyone is interested in it the site is: http://sbaeasy.com They also help you with the submittal and have unlimited assistance every step of the way. I highly recommend it. Hope that helps everyone to get the business loan they need for their plans…

    October 20, 2012

Leave a Reply

 
 
Live support chat software