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Concentration, Hold-up, and Information Revelation in Bank Lending: Evidence From Chilean Firms

In: Banking Market Structure and Monetary Policy

Author

Listed:
  • Álvaro García

    (Banco Central de Chile)

  • Andrea Repetto

    (Universidad Adolfo Ibañez)

  • Sergio Rodríguez

    (Superintendencia de Bancos e Instituciones Financieras)

  • Rodrigo O. Valdés

    (International Monetary Fund)

Abstract

In this paper we empirically study bank-client relationships using a sample of Chilean manufacturing firms. We examine whether concentration and the duration of bank-firm relationships affect the volume of bank lending. Our results indicate that lower concentration, measured by the number of banks a firm borrows from, is associated with a large and positive effect on borrowing. The length of borrower-lender relationships has a positive -although not always statistically significant- effect on the amount borrowed.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Álvaro García & Andrea Repetto & Sergio Rodríguez & Rodrigo O. Valdés, 2004. "Concentration, Hold-up, and Information Revelation in Bank Lending: Evidence From Chilean Firms," Central Banking, Analysis, and Economic Policies Book Series,in: Luis Antonio Ahumada & J. Rodrigo Fuentes & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Se (ed.), Banking Market Structure and Monetary Policy, edition 1, volume 7, chapter 7, pages 211-240 Central Bank of Chile.
  • Handle: RePEc:chb:bcchsb:v07c07pp211-240
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    References listed on IDEAS

    as
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    Cited by:

    1. Raphael Bergoeing & Andrea Repetto & Raimundo Soto, 2003. "Unveiling the Micro-Dynamics of Sustained Growth in Chile," Documentos de Trabajo 248, Instituto de Economia. Pontificia Universidad Católica de Chile..

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