Lending Competition and Relationship Banking: Evidence from Japan
The question of whether more competition among banks increases relationship banking, which is predicted to improve credit availability for informationally opaque firms in theory, is a controversial issue in the banking literature. By using firm-level survey data in Japan, this paper provides evidence for the negative correlation between lending competition and the provision of relationship banking . This paper raises the question whether fierce interbank competition is always beneficial for small firms.
|Date of creation:||30 Jun 2009|
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2006-68, Tilburg University, Center for Economic Research.
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