The importance of bank seniority for relationship lending
The authors examine two aspects of a bank's interaction with its borrowers--the relative priority of bank debt and the role of banks as "relationship lenders." They show that making the bank senior improves its incentives to build a relationship with the firm, thereby fulfilling an important function of intermediated debt.
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|Date of creation:||1999|
|Publication status:||Published in Conference on Bank Structure and Competition (1999 : 35th) ; Global financial crisis : implications for banking and regulation|
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