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Loan Officers and Relationship Lending to SMEs

  • Hirofumi Uchida

    ()

    (Wakayama University, Faculty of Economics)

  • Gregory F. Udell

    ()

    (Kelly School of Business, Indiana University)

  • Nobuyoshi Yamori

    ()

    (Nagoya University, Graduate School of Economics)

Previous research suggests that loan officers play a critical role in relationship lending by producing soft information about SMEs. For the first time, we empirically confirm this hypothesis. We also examine whether the role of loan officers differs from small to large banks as predicted by Stein (2002). While we find that small banks produce more soft information, the capacity and manner in which loan officers produce soft information does not seem to differ between large and small banks. This suggests that, although large banks may produce more soft information, they likely tend to concentrate their resources on transactions lending.

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File URL: http://docs.dises.univpm.it/web/quaderni/pdfmofir/Mofir016.pdf
File Function: First version, 2009
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Paper provided by Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences in its series Mo.Fi.R. Working Papers with number 16.

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Length: 38
Date of creation: Feb 2009
Date of revision:
Handle: RePEc:anc:wmofir:16
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