Richard Ratcliff, "The Inner Circle and Bank Lending Policy," in Michael Schwartz (ed), Structure of Power in America (New York: Holmes and Meier, 1987), 154-162, (original) (raw)

Michael Useem and others have demonstrated that the inner circle of the corporate elite is institutionally capable of apprehending and promoting the general interests of the business community. This article examines the inner group of directors among St. Louis, Missouri, corporations, documents their centrality in the center of networks of economic power, and documents how the inner circle influence the lending policy of the dominant banks in the region, and the consequences of these policies for residential and commercial development in the region.

The role of the banker-small business owner network in inner-city lending

Small businesses in the inner-cities continue to rely on banks to meet their credit needs, while banks consolidate their lending operations in remote locations, and rely more on heuristics that promote arms-length relationships, than on branch officers with access to vital private knowledge. We argue that small businesses in the inner-cities have very unique circumstances and the strong ties developed between branch officers and these business owners provide access to critical private knowledge that is otherwise unavailable. Therefore, if banks consider lending to this community a central part of their core strategy, banks must increase the role of branch officers because private knowledge is vital to the lending decision.

Mintz and Schwartz - Financial Interest Groups and Interlocking Directorates

We review the history of searching for interest groups within the corporate world centered around finance capital and banks in particular. We utilize detailed analysis of corporate interlocks to identify a larger pattern that connects the center of finance capital to the bulk of the corporate world, creating an integrated network of influence and control.

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