How does relationship banking influence credit financing? Evidence from the financial crisis

Arbeitspapier

During the financial crisis asymmetric information in credit markets became moresevere. Did relationship banking help firms to avoid impaired credit financing andwhich credit financing problems did relationship banking help to circumvent? We usesurvey data for 1,139 German firms to analyze how relationship banking works. Wefind that it lowers the probability of higher information requirements from banks. Itdoes not, however, help to avoid constrained availability of bank credit. If credit isgranted, relationship banking makes deteriorated non-price contract terms (i.e. collateraland maturity) less likely. Its impact on interest rates is ambiguous.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ifo Working Paper ; No. 157

Classification and Topics

• Classification: Wirtschaft ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Financial Crises ; Financial Institutions and Services: Government Policy and Regulation
• Subject: Credit financing ; relationship banking ; financial crisis ; access to credit

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hainz, Christa ; Wiegand, Manuel
• Event: Veröffentlichung
• (who): ifo Institute - Leibniz Institute for Economic Research at the University of Munich
• (where): Munich
• (when): 2013

Further information

• Handle: http://hdl.handle.net/10419/73808
• Last update: 10.03.2025, 11:44 AM CET