The Impact of Competition on Bank Orientation and Specialization (new titel: The impact of competition on bank orientation)

Arbeitspapier

How do banks react to increased interbank competition? Recent banking theory offers conflicting predictions about the impact of competition on bank orientation - i.e., the choice of relationship based versus transactional banking - and bank industry specialization. We empirically investigate the impact of interbank competition on bank branch orientation and specialization. We employ a unique data set containing detailed information on bank-firm relationships and industry classification. We find that bank branches facing stiff local competition engage relatively more in relationship-based lending but specialize somewhat less in a particular industry. Our results illustrate that competition and relationships are not necessarily inimical.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 1119

Classification and Topics

• Classification: Wirtschaft
• Subject: bank orientation ; bank industry specialization ; competition ; lending relationships

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Degryse, Hans ; Ongena, Steven
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/76546
• Last update: 10.03.2025, 11:42 AM CET