TY  - UNPD
A1  - Burghof, Hans-Peter
A1  - Henschel, Claudia
T1  - Credit and information in universal banking : a clinical study
T2  - Institut für Kapitalmarktforschung (Frankfurt am Main): CFS working paper series ; Nr. [19]98,13
N2  - We studied information and interaction processes in six lending relationships between a universal bank and medium sized firms. The study is based on the credit files of the respective firms. If no problems occur in these lending relationships, bank monitoring is based mainly on cheap, retrospective and internal data. In case of distress, more expensive, prospective and external information is used. The level of monitoring and the willingness to renegotiate the lending relationship depends on what the lending officers can learn about the future prospects of the firm from the behaviour of the debtors. We identify both signalling and bonding activities. Such learning from past behaviour seems to allow monitoring at low cost, whereas the direct observation of the firm's investment outlook seems to be very costly. Also, too much knowledge about the firm's investments might leave the bank in a very strong bargaining position and distort investment incentives. Therefore, the traditional view of credit assessment as observation of the quality of a borrower's investment programme needs to be reconsidered.
T3  - CFS working paper series - 1998, 13 
KW  - banking
KW  - relationship lending
KW  - renegotiation
KW  - distress
KW  - Universalbank
KW  - Klein- und Mittelbetrieb
KW  - Kredit
Y1  - 1998
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/4543
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-9510
SP  - 1
EP  - 21
PB  - Inst. für Kapitalmarktforschung
CY  - Frankfurt am Main
ER  -