Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/25370
Authors: 
Machauer, Achim
Weber, Martin
Year of Publication: 
2000
Series/Report no.: 
CFS Working Paper 2000/06
Abstract: 
In this study the firms' choice of the number of bank relationships is analyzed with respect to influential factors like borrower quality, size and the existence of a close housebank relationship. Then, the number of bank relationships is used as a proxy to examine if bank competition is reflected in loan terms. It is shown that the number of bank relationships is foremost determined by borrower size and the existence of a housebank relationship. Loan rate spreads are not effected by the number of bank relationships. However, borrowers with a small number of bank relationships provide more collateral and get more credit. These effects are amplified by a housebank relationship. Housebanks get more collateral and are ready to take a larger stake in the financing of their customers.
Subjects: 
Relationship banking
Bank loan terms
Internal borrower rating
JEL: 
G21
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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