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Relationship banking within the Irish SME sector and its implication

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  • Hanley, Aoife
  • O'Donohoe, Sheila

Abstract

Relationship banking involves the provision of financial services by an intermediary that a) invests in obtaining customer-specific information, often proprietary in nature; and b) evaluates the profitability of these investments through multiple interactions with the same customer over time and/or across products (Boot, 2000). We assess the presence and impact of relationship banking from an Irish SME perspective.We trace how significant patterns can be seen across several dimensions of the lender/business relationship using data for the year 2005. These dimensions include the duration of lender/business relationships and the cost of finance.

Suggested Citation

  • Hanley, Aoife & O'Donohoe, Sheila, 2009. "Relationship banking within the Irish SME sector and its implication," Kiel Working Papers 1553, Kiel Institute for the World Economy (IfW Kiel).
    • Handle: RePEc:zbw:ifwkwp:1553
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    References listed on IDEAS

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    More about this item

    Keywords

    Relationship lending;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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