Southern California is ripe for irrational lending: A slow economy has stymied loan growth, and plenty of wounded competitors are anxious to book new business.

But bankers say it is not sick rivals that are causing concern. Rather, competitors claim that Los Angeles-based Sanwa Bank, the $7.6 billion-asset unit of the Japanese superbank, has been too aggressive in the fight for share of the small business loan market.

Limited Time Offer

Save $400 off your subscription. Special offer ends April 30, 2017.

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.