Bigger banks boost real estate lending, smaller banks tighten credit access.
Banks changed their loan portfolios from 1976 to 2003 due to new financial markets and rules. Big and new banks lent more for real estate, especially commercial real estate, while small and old banks kept more loans for businesses and people. Big banks charged lower interest on real estate loans, making it easier for borrowers to get credit. Small banks charged higher interest, limiting loans to certain borrowers.