Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/83389 
Year of Publication: 
2010
Series/Report no.: 
IES Working Paper No. 22/2010
Publisher: 
Charles University in Prague, Institute of Economic Studies (IES), Prague
Abstract: 
This paper presents the results of an analysis of data on individual bank loans of non-financial corporations in the Czech Republic taken from the CNB's Central Credit Register. It focuses on the question of how firms obtain financing from domestic banks. The results show that the vast majority of non-financial corporations use the services of just one relationship lender. Small and young firms in technology- and knowledge-intensive industries tend to concentrate their credit needs in a single bank, whereas less creditworthy firms and firms in cyclical industries tend to borrow from more than one bank. The analysis also reveals different behaviour of firms towards financing banks in case of multiple lenders. Finally, the paper shows that the level of credit risk at bank level decreases in line with the extent to which firms applying single relationship lending occur in the bank's portfolio.
Subjects: 
relationship banking
credit risk
JEL: 
G21
G32
Document Type: 
Working Paper

Files in This Item:
File
Size
234.14 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.