Bank closures lead to job cuts at small businesses – Fed study
Research finds that if 25% of local branches close, employment growth falls by four percentage points
Bank branch closures, driven by mergers and acquisitions, lead to decreased employment levels at small businesses, according to a study from the US Federal Reserve Board.
The paper – by Ben Ranish, Andrea Stella and Jeffery Zhang, which was published on July 29 – cites data from the US Census Bureau and the Federal Reserve System’s National Information Center database. It says the number of bank branches in the US has fallen by around 20% since 2010.
The authors say firms with fewer than 20
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