Bank lending networks, experience, reputation, and borrowing costs : empirical evidence from the french syndicated lending market
We investigate the network structure of bank lending markets and evaluate the impact of lenders' network centrality, considered a measure of their experience and reputation, on borrowing costs. We show that the French market for syndicated bank loans is a ‘small world' characterized by large local density and short social distances between lenders. Such a network structure allows for better information and resources flows between banks thus enhancing their social captial. We then show that lenders' experience and reputation play a significant role in reducing loan spreads and thus increasing borrower's wealth.
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|Date of creation:||Jan 2012|
|Publication status:||Published in Journal of Business Finance and Accounting, Wiley, 2012, 39 (1-2), pp.113 - 140. <10.1111/j.1468-5957.2011.02269.x>|
|Note:||View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-01289953|
|Contact details of provider:|| Web page: https://hal.archives-ouvertes.fr/|