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Relationship lending: empirical evidence for Germany

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  • Schmieder, Christian
  • Memmel, Christoph
  • Stein, Ingrid

Abstract

Relationship lending is a common practice in credit financing all over the world, particularly in Germany. On the basis of a comprehensive data set comprising information on firm-bank relationships for more than 16,000 observations, this study analyses the determinants of relationship lending in Germany. We find that small, young and R&D-intensive firms tend to choose relationship lending. Furthermore, we find that firms with a higher creditworthiness are more likely to choose a relationship lender. We find that the importance of relationship lending stayed roughly constant since the mid 90s. --

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Bibliographic Info

Paper provided by Deutsche Bundesbank, Research Centre in its series Discussion Paper Series 2: Banking and Financial Studies with number 2007,14.

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Date of creation: 2007
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Handle: RePEc:zbw:bubdp2:6799

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Keywords: Relationship banking; German banking system; SME;

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Citations

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Cited by:
  1. Tlili, Rim, 2012. "Comment justifier la multibancarité au sein des PME ?," Economics Thesis from University Paris Dauphine, Paris Dauphine University, Paris Dauphine University, number 123456789/10919 edited by Etner, François.
  2. Andrea F. Presbitero & Alberto Zazzaro, 2010. "Competition and Relationship Lending: Friends or Foes?," CESifo Working Paper Series 3103, CESifo Group Munich.
  3. James Barth & Dongyun Lin & Keven Yost, 2011. "Small and Medium Enterprise Financing in Transition Economies," Atlantic Economic Journal, International Atlantic Economic Society, International Atlantic Economic Society, vol. 39(1), pages 19-38, March.
  4. Mager, Ferdinand & Schmieder, Christian, 2008. "Stress testing of real credit portfolios," Discussion Paper Series 2: Banking and Financial Studies 2008,17, Deutsche Bundesbank, Research Centre.
  5. 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.
  6. Ogura, Yoshiaki, 2012. "Lending competition and credit availability for new firms: Empirical study with the price cost margin in regional loan markets," Journal of Banking & Finance, Elsevier, Elsevier, vol. 36(6), pages 1822-1838.
  7. Djedidi-Kooli, Salima, 2009. "L’accès au financement des PME en France : quel rôle joué par la structure du système bancaire ?," Economics Thesis from University Paris Dauphine, Paris Dauphine University, Paris Dauphine University, number 123456789/8354 edited by Etner, François.
  8. Holl, Dorothee & Schertler, Andrea, 2009. "Why do savings banks transform sight deposits into illiquid assets less intensively than the regulation allows?," Discussion Paper Series 2: Banking and Financial Studies 2009,05, Deutsche Bundesbank, Research Centre.
  9. Haselmann, Rainer & Marsch, Katharina & Weder di Mauro, Beatrice, 2009. "Real Effects of Bank Governance: Bank Ownership and Corporate Innovation," CEPR Discussion Papers, C.E.P.R. Discussion Papers 7488, C.E.P.R. Discussion Papers.
  10. Stein, Ingrid, 2011. "The price impact of lending relationships," Discussion Paper Series 2: Banking and Financial Studies 2011,04, Deutsche Bundesbank, Research Centre.

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