Percentage of Bad Loans by Size of Bank, 1999 to 2014

Percentage of Bad Loans by Size of Bank, 1999 to 2014

Date: 20 Apr 2015 | posted in: Banking | 0 Facebooktwitterredditmail

placeholderGiant banks, defined as those with more than $100 billion in assets, consistently make poorer lending decisions and write-off more bad loans than do community banks, those financial institutions with under $1 billion in assets. The financial crisis heightened this trend, and in the years from 2008 to 2011, the share of bad loans made by giant banks spiked, while the share for small banks and community banks remained much more level.

Graph: Bad Loans by Bank Size.

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Olivia LaVecchia

Olivia LaVecchia is a senior researcher with ILSR’s Community-Scaled Economy Initiative, where her work focuses on building awareness and support for public policy tools that strengthen locally owned businesses and check concentrated economic power.