IDEAS home Printed from https://ideas.repec.org/a/sbr/abstra/v52y2000i3p282-309.html
   My bibliography  Save this article

Credit And Information In Universal Banking

Author

Listed:
  • Hans-Peter Burghof

Abstract

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.

Suggested Citation

  • Hans-Peter Burghof, 2000. "Credit And Information In Universal Banking," Schmalenbach Business Review (sbr), LMU Munich School of Management, vol. 52(3), pages 282-309, July.
  • Handle: RePEc:sbr:abstra:v:52:y:2000:i:3:p:282-309
    as

    Download full text from publisher

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

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jens Grunert & Lars Norden, 2012. "Bargaining power and information in SME lending," Small Business Economics, Springer, vol. 39(2), pages 401-417, September.
    2. Lehmann, Erik & Neuberger, Doris, 2001. "Do lending relationships matter?: Evidence from bank survey data in Germany," Journal of Economic Behavior & Organization, Elsevier, vol. 45(4), pages 339-359, August.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. 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). General contact details of provider: http://edirc.repec.org/data/fbmunde.html .

    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.

    We have no references for this item. You can help adding them by using 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.