Study Shows Small Banks Gaining Market Share

Boxwood's recent research uncovered that small banks are indeed lending and taking market share from larger banks along with this activity. In a year-over-year comparison of small-balance commercial lending ending 2Q08, the top 100 banks lost 277 basis points (2.77%) in total market share while banks ranked 101 to 1,000 gained 208 basis points (2.08%). The shift in market shares of refinance loans, the largest component of recent loan production, was even more favorable for smaller banks. See the synopsis of the study for more discussion of the research results.