Relationship lending and SMEs’ funding costs over the cycle: Why diversification of borrowing matters
| Autor: | Mikael Beatriz, Jerome Coffinet, Théo Nicolas |
|---|---|
| Rok vydání: | 2022 |
| Předmět: |
Economics and Econometrics
050208 finance Panel design media_common.quotation_subject Control (management) 05 social sciences Diversification (finance) Monetary economics Interest rate Competition (economics) Loan Financial crisis 0502 economics and business Business 050207 economics Finance media_common |
| Zdroj: | Journal of Banking & Finance. 138:105471 |
| ISSN: | 0378-4266 |
| DOI: | 10.1016/j.jbankfin.2018.12.007 |
| Popis: | Using a unique panel design that enables to control for bank, firm, market and loan heterogeneities, we confirm that relationship lenders charge higher rates in good times and lower rates in bad times. However, we show that risky single-bank firms do not benefit from this insurance mechanism and are “held-up” by relationship lenders. Local bank competition and higher non-bank finance dependence alleviate this information-monopolistic behavior. Finally, long-term loans and small, non-trading-oriented and well-capitalized banks drive the benefits of relationship lending. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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