Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/76546
Authors: 
Degryse, Hans
Ongena, Steven
Year of Publication: 
2004
Series/Report no.: 
CESifo Working Paper 1119
Abstract: 
How do banks react to increased interbank competition? Recent banking theory offers conflicting predictions about the impact of competition on bank orientation - i.e., the choice of relationship based versus transactional banking - and bank industry specialization. We empirically investigate the impact of interbank competition on bank branch orientation and specialization. We employ a unique data set containing detailed information on bank-firm relationships and industry classification. We find that bank branches facing stiff local competition engage relatively more in relationship-based lending but specialize somewhat less in a particular industry. Our results illustrate that competition and relationships are not necessarily inimical.
Subjects: 
bank orientation
bank industry specialization
competition
lending relationships
Document Type: 
Working Paper

Files in This Item:
File
Size





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