A recent MIT study has found new evidence of the critical role relationship banking plays in low-income communities. The paper found branch closures had a strong negative effect on small business lending in low income areas — even when other nearby branches remained open. After a branch closing, small-business lending  within the branch’s census track declined by an average of 13 percent. The author writes that his findings could call into question the current approach to regulating bank closings and mergers, which often focuses on ensuring the area will be sufficiently covered by other local branches rather than preserving the information and relationships customers have built with the defunct branches.