English, Article, Journal or magazine article edition: Competition and Relationship Lending: Friends or Foes? Andrea Filippo Presbitero; Alberto Zazzaro

User activity

Share to:
 
Bookmark: http://trove.nla.gov.au/version/19222
Physical Description
  • preprint
Language
  • English

Edition details

Title
  • Competition and Relationship Lending: Friends or Foes?
Author
  • Andrea Filippo Presbitero
  • Alberto Zazzaro
Physical Description
  • preprint
Notes
  • Recent empirical findings by Elsas (2005) and Degryse and Ongena (2007) document a U-shaped effect of market concentration on relationship lending whichvcannot be easily accommodated to the investment and strategic theory of relationship lending. In this paper, we show that this non-monotonicity can be explained by looking at the organisational structure of local credit markets. We provide evidence that marginal increases in interbank competition are detrimental (favourable) to relationship lending in markets where transaction-based loans are a primary (limited) product offered by a vast (tiny) group of large, outside headquartered banks. On the contrary, where relational-based lending technologies are already widely in;use in the market, an increase in competition may drive banks to further cultivate their extensive ties with customers. Finally, we show that when competition comes from functionally distant banks, local intermediaries increase their engagement in relationship lending with local firms, consistent with the flight-to-captivity mechanism introduced by Boot and Thakor (2000) and further discussed by Dell'Ariccia and Marquez (2004) and Hauswald and Marquez (2006).
  • interbank competition, market organisational structure, relationship lending
  • RePEc:anc:wmofir:13
Language
  • English
Contributed by
OAIster

Get this edition

Other links

  • Set up My libraries

    How do I set up "My libraries"?

    In order to set up a list of libraries that you have access to, you must first login or sign up. Then set up a personal list of libraries from your profile page by clicking on your user name at the top right of any screen.

  • All (1)
  • Unknown (1)
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.
None of your libraries hold this item.

User activity


e.g. test cricket, Perth (WA), "Parkes, Henry"

Separate different tags with a comma. To include a comma in your tag, surround the tag with double quotes.

Be the first to add a tag for this edition

Be the first to add this to a list

Comments and reviews

What are comments? Add a comment

No user comments or reviews for this version

Add a comment