Funding by the Ford Foundation
Authors: Hoyt, Josh
Summary
This report discussed how commercial lending should be disclosed at two levels. First, information which contributes to an understanding of the lending experience and specialization of the individual bank should be reported at the aggregate level. This would include such information as: Minimum Size Business Loan; Small Business Administration (SBA) Lending; Total Commercial Lending; Total Loan Participations; Lending by Loan Size and Type of Borrower; and Lending by Terms for Type of Loan. Second, information which contributes to an understanding of the location and type of lending done should be disclosed at the census tract level. This information will aid in understanding the lending patterns of an individual bank, as well as where credit is flowing in the community and what credit needs are unmet. This would include Census Tract Level Disclosure of Commercial Lending, and Type of Loan by Type of Borrower. The Woodstock Institute recommends that this combination of aggregate information on the nature and terms of the bank’s lending and the geographic breakdown on both the type of borrower and the type of loan should be included in any commercial lending disclosure legislation.
Download
Commercial Lending Disclosure and Economic Development: A Plan for Action
