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Deconstructing relationship banking

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Author Info
Xavier Freixas (Universitat Pompeu Fabra)
Abstract

During the last decade the concept of relationship banking has been forged in the theory of banking to reflect the sharing of private information between a bank and its clients and the benefits of a continuing relationship. A number of theoretical contributions have examined the implications of relationship banking on the banking industry market structure, but their results are sometimes contradictory. This paper constitutes an analytical survey that examines relationship banking by means of a simple basic model and studies the implications of relationship banking on the pricing of loans, as well as its effect on the degree of competition in the banking industry.

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File URL: ftp://ftp.funep.es/InvEcon/paperArchive/Ene2005/v29i1a1.pdf
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Publisher Info
Article provided by Fundación SEPI in its journal Investigaciones Economicas.

Volume (Year): 29 (2005)
Issue (Month): 1 (January)
Pages: 3-31
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Handle: RePEc:iec:inveco:v:29:y:2005:i:1:p:3-31

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Related research
Keywords: Relationship banking; competition; market structure;

Find related papers by JEL classification:
G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Mortgages

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Clara Cardone & Maria-Jose Casasola & Margarita Samartin, 2005. "Do Banking Relationships Improve Credit Conditions For Spanish Smes?," Business Economics Working Papers wb052806, Universidad Carlos III, Departamento de Economía de la Empresa. [Downloadable!]
  2. Giannetti, C., 2009. "Relationship Lending and Firm Innovativeness," Discussion Paper 2009-08, Tilburg University, Center for Economic Research. [Downloadable!]
  3. Gábor Pellényi & Tamás Borkó, 2009. "Bank Competition and Firm Growth in the Enlarged European Union," Working Paper / FINESS 5.1, DIW Berlin, German Institute for Economic Research. [Downloadable!]
  4. Cosci Stefania & Meliciani Valentina, 2007. "The role of screening and cross-selling in bank-firm relationships," wp.comunite 0033, Department of Communication, University of Teramo. [Downloadable!]
  5. Degryse, Hans & Ongena, Steven, 2006. "The impact of competition on bank orientation," Discussion Paper 68, Tilburg University, Center for Economic Research. [Downloadable!]
    Other versions:
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