Number of bank relationships : an indicator of competition, borrower quality, or just size?
- In this study the firms' choice of the number of bank relationships is analyzed with respect to influential factors like borrower quality, size and the existence of a close housebank relationship. Then, the number of bank relationships is used as a proxy to examine if bank competition is reflected in loan terms. It is shown that the number of bank relationships is foremost determined by borrower size and the existence of a housebank relationship. Loan rate spreads are not effected by the number of bank relationships. However, borrowers with a small number of bank relationships provide more collateral and get more credit. These effects are amplified by a housebank relationship. Housebanks get more collateral and are ready to take a larger stake in the financing of their customers.
Author: | Achim Machauer, Martin Weber |
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URN: | urn:nbn:de:hebis:30-9711 |
Parent Title (German): | Institut für Kapitalmarktforschung (Frankfurt am Main): CFS working paper series ; No. 2000,06 |
Series (Serial Number): | CFS working paper series (2000, 06) |
Document Type: | Working Paper |
Language: | English |
Year of Completion: | 2000 |
Year of first Publication: | 2000 |
Publishing Institution: | Universitätsbibliothek Johann Christian Senckenberg |
Release Date: | 2005/06/13 |
Tag: | Bank loan terms; Internal borrower rating; Relationship banking |
GND Keyword: | Deutschland; Unternehmen; Bank; Beschaffungsmarketing; Beziehungsmanagement; Lieferung; Abnehmer; Bankkredit; Darlehen; Kredit; Betriebsgröße; Unternehmensgröße; Kreditmarkt; Wettbewerb; Wettbewerbsfreiheit; Wettbewerbsfähigkeit; Schätzung; Geschichte 1992-1996 |
Issue: | March 2000 |
Page Number: | 27 |
Source: | CFS working paper ; 2000,06 |
HeBIS-PPN: | 199427038 |
Institutes: | Wissenschaftliche Zentren und koordinierte Programme / Center for Financial Studies (CFS) |
Dewey Decimal Classification: | 3 Sozialwissenschaften / 33 Wirtschaft / 330 Wirtschaft |
Licence (German): | Deutsches Urheberrecht |