IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this article or follow this journal

Credit And Information In Universal Banking

  • Hans-Peter Burghof
Registered author(s):

    The internal aspects of bank lending, information production, and interaction between debtor and bank lending officers are still a black box to banking theory. To achieve some empirical insight into these aspects of financial intermediation, I analyze the credit files of six lending relationships between a German universal bank and medium sized firms. If no crisis occurs in these lending relationships, bank monitoring uses mainly cheap, retrospective, internal data. Most of the data the bank uses is not publicly available. This finding supports the concept of banks as delegated monitors that have an informational advantage over capital markets. I also observe signalling and monitoring behavior of the debtor, which indicates that the bank also acts as delegated contractor. Bank lending officers seem to receive information about their debtors not only from monitoring, but also from the debtors’ behavior. Although my results are obtained from a clinical, non-representative study, they nevertheless provide some empirical evidence on the potential relevance of theoretical concepts of bank lending.

    If 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.

    File URL: http://www.vhb.de/sbr/pdfarchive.html
    Download Restriction: no

    Article provided by LMU Munich School of Management in its journal Schmalenbach Business Review.

    Volume (Year): 52 (2000)
    Issue (Month): 3 (July)
    Pages: 282-309

    as
    in new window

    Handle: RePEc:sbr:abstra:v:52:y:2000:i:3:p:282-309
    Contact details of provider: Postal: Geschwister-Scholl-Platz 1, 80539 Muenchen
    Phone: 0049 89 2180 2166
    Fax: 0049 89 2180 6327
    Web page: http://www.sbr-online.com

    More information through EDIRC

    No references listed on IDEAS
    You can help add them by filling out this form.

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    When requesting a correction, please mention this item's handle: RePEc:sbr:abstra:v:52:y:2000:i:3:p:282-309. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (sbr)

    The email address of this maintainer does not seem to be valid anymore. Please ask sbr to update the entry or send us the correct address

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.