Where have all the banks gone? IAMECON wins another federal research grant

Updated: Oct 15, 2019

We did it again! Our team is excited to announce that Intelligent Analytics and Modeling was recently awarded a federal research contract from the US Small Business Administration to perform a year long research study "De Novo bank life-cycle patterns, access to capital and small business formation". We will co-author the study with Dr. Yaroslav Rosokha, who has previously worked on a related research project with our founder Dr. Ikizler.


Access to financial capital is a key concern for small and burgeoning businesses throughout the country. Findings from the finance field support that small banks are more likely to work with smaller and riskier borrowers, which tend to coincide with newly formed businesses. As such, there has recently been greater interest in the formation of de novo banks and how the decline in their numbers since the financial crisis has impacted small businesses (while new banks formed at an average rate of over 100/yr between 1990-2008, between 2009-2013 banks have formed at an average rate of 2/yr).

Bank Asset Size Transition Matrices

We will perform a study of life-cycle dynamics on de novo banks, from entry to exit, and its effects on small business formation using the brand new Business Formation Statistics (BFS) database. We will utilize quarterly FDIC call reports from 1984-2019, along with Merger and Acquisitions (M&A) database in order to track each bank’s growth path (as measured by asset size) and its effects on their lending behavior (as measured by small business loan availability at the State level using CRA and call reports). Our study will be published in late 2020.


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Founded in 2018, Intelligent Analytics and Modeling, Inc. is an economics think tank that provides comprehensive policy and impact evaluations, business damage calculations, and expert witness testimony. For further information on our company, or to request a quote for your economic project or business damages consultation, please visit our website at www.iamecon.com or send us an e-mail at info@iamecon.com.

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