Small banks and financial institutions have difficulty competing on a level playing field with large capital banks in the commercial financing market, simply because of the large amounts of money needed to finance commercial products.

This makes the market less competitive compared to the many institutions that fight for the residential market share. Large banks are in the forefront of commercial lending, increasing their bottom line. This is a boon to bank stockholders and management alike, but means less competition, higher prices, and usually poorer service for commercial lenders.

judyh :: Jul.29.2008 :: Finance, Real Estate :: No Comments »