Banks will increase their lending to small businesses as they refine their credit scoring techniques for evaluating entrepreneurs, Federal Reserve Board Governor Lawrence B. Lindsey said last week.

Speaking at a small-business development conference Wednesday in Richmond, Va., Mr. Lindsey also predicted that as they grow more familiar with small firms, banks will be able to standardize loan forms, thereby reducing the cost of evaluating small-business risks.

In addition, as credit scoring and loan standardization become more commonplace, banks will have an easier time securitizing small-business loans, he said.

All three factors should help reduce the cost of small-business loans, Mr. Lindsey said.

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