This study explores the impact of relationship banking on the financial constraints and loan conditions of small and medium-sized enterprises (SMEs) in China. Our research contributes to the literature in several ways. First, we examine both the financial costs and loan benefits associated with...

This study provides direct evidence of the value to banks arising from relationship lending by estimating the market premium placed on banking organizations' small business loan portfolios. Using data from the small business loan survey contained in the June bank Call Reports, we find that small...

We show that banks "extended-and-pretended" their impaired CRE mortgages in the post-pandemic period to avoid writing off their capital, leading to credit misallocation and a buildup of financial fragility. We detect this behavior using loan-level supervisory data on maturity extensions, bank...

This study delves into the impact of technological bank innovations on small and medium-sized enterprise (SME) borrowing across the European Union. By analyzing a comprehensive dataset of 179,921 SME-bank lending relationships from 2009 to 2019, we explore the mechanisms through which...

Die Kreditnachfrage von Unternehmen ist im zweiten Quartal 2024 neuerlich gesunken. Damit verlängerte sich ein seit dem vierten Quartal 2022 bestehender Abwärtstrend ein weiteres Mal. Hauptgrund dafür ist die abnehmende Investitionstätigkeit der Unternehmen. Für das dritte Quartal 2024...

Over the past decade, banks have heavily invested in technological development, bringing hope to many underserved customers. However, the benefits of bank digitalization for small & medium-sized enterprises (SMEs) remain ambiguous. Using a sample of 179,921 SMEs and their borrowing relationships...

We investigate how firm–bank relationships affect firms’ stock performance during the COVID-19 crisis. Using Japanese firms’ data, we find that the COVID-19 outbreak caused a sharp drop in the stock performance of both the firms with more concentrated bank relationships and those with less...

What is in banks’ private information about borrowers, and how does it relate to physical distance and relationship length? Exploiting the Federal Reserve’s comprehensive supervisory loan-level dataset on corporate borrowers, we distinguish two dimensions of private information embedded in...

Die Nachfrage der Unternehmen nach Investitionsfinanzierungen sinkt seit dem dritten Quartal 2022 und dürfte auch im dritten Quartal 2023 weiter rückläufig bleiben. Hintergrund ist die konjunkturelle Eintrübung infolge der globalen wirtschaftlichen und politischen Verwerfungen sowie das...

Die Kreditnachfrage von Unternehmen ist in Österreich im dritten Quartal 2023 deutlich gesunken, insbesondere jene nach langfristigen Krediten bzw. zur Finanzierung von Investitionen. Bereits seit dem vierten Quartal 2022 schwächt sich die Nachfrage nach Unternehmenskrediten ab. Für das...

This paper documents a novel ``fire-sale insurance" channel through which lending relationships help borrowers when their loans are securitized into CLOs. We document that CLO managers avoid selling the loans of firms related to their underwriter bank when liquidity shocks induce selloffs....

While banks historically offer a litany of different credit and depository products to their local customers, technological innovation and consumer preferences have spurred growth of online banks specializing in particular activities across broad geographic areas. This paper analyzes the...

We study bank specialization in lending in the U.S. corporate loan market. We document that banks specialize in lending to specific industries. Specialization is persistent over time and common across industries. Using detailed information on syndicated loans, we show that the typical loan...

In this paper, we examine the significance and uniqueness of individual-pair relationships cultivated through repeated loan interactions. Using a hand-collected dataset compiled of borrowing manager and loan officer information, we find that individual-pair relationship loans are associated with...

This paper examines how Basel III capital reforms affected bank lending in Ger- many. We focus on the increase of minimum risk-based capital requirements and the introduction of the leverage ratio. The announcement of stricter risk-based capital regulation significantly affected low capitalized...

We investigate how firms’ stock performance during the COVID-19 crisis varies, depending on firm–bank relationships. Using Japanese firms’ data, we find that the outbreak of COVID-19 caused a sharp drop in the stock performance of both firms with more concentrated bank relationships and...

We study the corporate-loan pricing decisions of a major Greek bank during the Greek financial crisis. A unique aspect of our dataset is that we observe both the interest rate and the ``breakeven rate'' of each loan, as computed by the bank's own loan-pricing department (in effect, the loan's...

We study the corporate-loan pricing decisions of a major Greek bank during the Greek financial crisis. A unique aspect of our dataset is that we observe both the interest rate and the "breakeven rate" of each loan, as computed by the bank's own loan-pricing department (in effect, the loan's...

It is well recognized that relationship banking helps to relieve the credit constraints faced by SMEs to access bank finance. Trust is an important part of relationship banking. However, the term trust is nebulous,and relationship banking means different things to different banksand different...

A growing literature addresses the costs and benefits associated with relationship banking, particularly for smaller firms, but with much of this work focused on normal trading conditions. Covid-19 provides an ideal testbed to explore the resilience of relationship banking. We examine whether...

We document a strong political cycle in bank credit and industry outcomes in Turkey. In line with theories of tactical redistribution, state-owned banks systematically adjust their lending around local elections compared with private banks in the same province based on electoral competition and...

Bank specialization leads to expertise, including knowledge on zombie borrowers and the negative impact they exert on healthy borrowers. This induces specialized banks to reduce zombie lending. The reduction in zombie lending is larger when the scope and opportunity cost of negative spillovers...

We analyze the credit supply and real sector effects of bank bail-ins by exploiting the unexpected failure of a major Portuguese bank and subsequent resolution. Using a matched firm-bank dataset on credit exposures and interest rates, we show that while banks more exposed to the bail-in...

Theoretische und methodische Fundierung der Arbeit -- Einleitung -- Erfolgsbewertung in Banken -- Effizienzorientierte Erfolgsbewertung -- Empirische Studie zur Kunden- effizienz und ihren Determinanten -- Grundlagen und Aufbau der Untersuchung -- Datengrundlage und deskriptive Analyse --...

Non-lending activities in SME financing is a phenomenon whose significance has recently been recognized. Provision of different products and services to companies is becoming an important profit center for banks serving SMEs and the supply side of SME financing has been experiencing a shift...

Did the rise of Chinese import competition in the early 2000s affect banks' credit supply policies? Using bank-firm-level data on the universe of Spanish corporate loans, we find that banks rebalanced their loan portfolios away from firms facing Chinese import competition and towards profitable...

We study the informational role of interfirm ownership networks in loan monitoring. Using comprehensive data on monthly internal rating changes of individual corporate loans in China, we directly measure banks' soft information by tracing whether banks downgrade ratings before delinquency. We...