Lending Competition and Relationship Banking: Evidence from Japan
AbstractThe question of whether more competition among banks increases relationship banking, which is predicted to improve credit availability for informationally opaque firms in theory, is a controversial issue in the banking literature. By using firm-level survey data in Japan, this paper provides evidence for the negative correlation between lending competition and the provision of relationship banking . This paper raises the question whether fierce interbank competition is always beneficial for small firms.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 16707.
Date of creation: 30 Jun 2009
Date of revision:
relationship banking; lending competition;
Find related papers by JEL classification:
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-08-16 (All new papers)
- NEP-BAN-2009-08-16 (Banking)
- NEP-BEC-2009-08-16 (Business Economics)
- NEP-COM-2009-08-16 (Industrial Competition)
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.:
- Dell'Ariccia, Giovanni & Marquez, Robert, 2004. "Information and bank credit allocation," Journal of Financial Economics, Elsevier, vol. 72(1), pages 185-214, April.
- Degryse, Hans & Ongena, Steven, 2007.
"The impact of competition on bank orientation,"
Journal of Financial Intermediation,
Elsevier, vol. 16(3), pages 399-424, July.
- Arnoud W. A. Boot & Anjan V. Thakor, 2000.
"Can Relationship Banking Survive Competition?,"
Journal of Finance,
American Finance Association, vol. 55(2), pages 679-713, 04.
- Robert Hauswald & Robert Marquez, 2006. "Competition and Strategic Information Acquisition in Credit Markets," Review of Financial Studies, Society for Financial Studies, vol. 19(3), pages 967-1000.
- Mitchell A. Petersen & Raghuram G. Rajan, 1994.
"The Effect of Credit Market Competition on Lending Relationships,"
NBER Working Papers
4921, National Bureau of Economic Research, Inc.
- Petersen, Mitchell A & Rajan, Raghuram G, 1995. "The Effect of Credit Market Competition on Lending Relationships," The Quarterly Journal of Economics, MIT Press, vol. 110(2), pages 407-43, May.
- Degryse, H.A. & Ongena, S., 2006.
"The Impact of Competition on Bank Orientation,"
2006-68, Tilburg University, Center for Economic Research.
- Gajewski, Krzysztof & Pawłowska, Małgorzata & Rogowski, Wojciech, 2012.
"Relacje firm z bankami w Polsce w świetle danych ze sprawozdawczości bankowej
[Bank-firm relationships in Poland in the light of data from bank reporting]," MPRA Paper 42544, University Library of Munich, Germany, revised 29 Oct 2012.
- Yamori, Nobuyoshi & Tomimura, Kei & Takaku, Kenya, 2013.
"東海地域における中小企業の経営力強化のための 金融機関と自治体等の取り組みの現状と課題 ―中小企業アンケート調査の概要－
[How Do Financial In," MPRA Paper 47030, University Library of Munich, Germany.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.