The Tenth District economy posted a healthy gain in 1995, although growth slowed from the vigorous tempo of the year before. The district slowed sharply in the spring, but activity rebounded somewhat later in the year, in a pattern similar to that in the national economy. The district's main...

Most small business lending from banks originates with institutions that have a local branch, but “out-of-market” lending does not. Supporting the view that proximity is conducive to lending, I find that only about 10 percent of small business lending is from banks with no branch in the...