TY  - RPRT
A1  - Slotty, Constantin F.
T1  - Does relationship lending promote growth? : Savings banks and SME financing
N2  - This paper addresses the question whether close borrower-lender relationships, so called hausbank-relationships, facilitate the funding and beneficial development of SME. To this end, we derive a model which relates a firm's growth rate to its need for external funds and subsequently compute the firms that exceed their predicted growth rate. We then use this measure to identify specific characteristics that are associated with long- and short-term financing of firm growth, in particular the influence of relationship lending. We find that close ties with savings banks predict firms' access to external finance to fund growth. Moreover, the long-term liabilities of firms with hausbank-relationships almost double those with multiple relationships while the overall leverage is about the same. In turn, we find an strong empirical relationship between the provision of long-term funds and firm growth. Keywords: small business lending, credit access, public banks JEL Classifications: G21, D21
KW  - small business lending
KW  - credit access
KW  - public banks
Y1  - 2009
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/6986
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30-70156
UR  - http://ssrn.com/abstract=1376251
N1  - First Draft: January 2009.
IS  - Version: April 2009
CY  - Frankfurt am Main
ER  -