We study how a bank's willingness to lend to a previously exclusive firm changes once the firm obtains a loan from … another bank (“outside loan”) and breaks an exclusive relationship. Using a difference-in-difference analysis and a setting … where outside loans are observable, we document that an outside loan triggers a decrease in the initial bank's willingness …

We study how a bank's willingness to lend to a previously exclusive firm changes once the firm obtains a loan from … another bank (“outside loan”) and breaks an exclusive relationship. Using a difference-in-difference analysis and a setting … where outside loans are observable, we document that an outside loan triggers a decrease in the initial bank's willingness …

The traditional role of a bank was to transfer funds from savers to investors, engaging in maturity transformation … innovation and technology. These new bank business models have had repercussions on the loan contract. In particular, the main … lending. And the lending technology is evolving from one-to-one meetings between a loan officer and a borrower, at a bank …