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Transborder lending policies: The example of Germany and Austria

Author

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  • Jarko Fidrmuc
  • Christa Hainz

Abstract

Data on the Ifo credit climate, which was compiled twice annually from a special question in the Ifo Business Survey, show that German SMEs near the Austrian border have a better access to credit than other firms. Without cross border lending, the proximity to the border would be a disadvantage in terms of borrowing. Cross-border lending compensates for this disadvantage. The fact that the firms profit from proximity to the border suggest that Austrian banks have a competitive advantage.

Suggested Citation

  • Jarko Fidrmuc & Christa Hainz, 2008. "Transborder lending policies: The example of Germany and Austria," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 61(23), pages 25-29, December.
    • Handle: RePEc:ces:ifosdt:v:61:y:2008:i:23:p:25-29
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    References listed on IDEAS

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    1. Fidrmuc, Jarko & Hainz, Christa, 2008. "Integrating with Their Feet: Cross-Border Lending at the German-Austrian Border," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 248, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
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    More about this item

    JEL classification:

    • E51 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Money Supply; Credit; Money Multipliers

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