Using data from a Federal Reserve survey of member banks, the division of labor in banking is examined. Size of loan, non-local lending, and industry of borrower are found to vary by size of bank. The concentratin of large banks in metropolitan areas is associated with the existence of a division of labor in banking. The distribution of institutions and their variations in size provide a framework for understanding functional differences of organizations.
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Stanley Lieberson (1961) studied this question.