International Similarities of Bank Lending Practices and Varieties of Insolvency Laws: a Comparative Analysis of France and Germany

Ingrid Groessl () and Nadine Levratto ()
Additional contact information
Ingrid Groessl: Universitaet Hamburg, School of Business, Economics and Social Sciences, Department of Socioeconomics
Nadine Levratto: Université de Paris ouest Nanterre

No 201203, Macroeconomics and Finance Series from University of Hamburg, Department of Socioeconomics

Abstract: Economic theory conjectures complementarities between the ranking of creditors in formal insolvency proceedings and the use of collateral in bank loan contracts as well as the existence of relational compared to arm’s length lending. In this paper we seek evidence for these hypotheses taking France and Germany as examples which differ significantly concerning the ranking of in particular secured creditors. On closer scrutiny of empirical studies as well as statistical information we can neither confirm that a high priority for se-cured lenders explains an excessive use of collateral in bank loans nor that a priority for inside collateral promotes relational lending. Regarding relational lending we point to variables lying outside the insolvency law, like culture and history.

Keywords: Insolvency; France; Germany; bank-borrower-relationships; collateral; variety-of-capital-approach; law and finance (search for similar items in EconPapers)
JEL-codes: G21 G33 K12 K22 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2012-04
New Economics Papers: this item is included in nep-cba, nep-for and nep-law
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.wiso.uni-hamburg.de/repec/hepdoc/macppr_3_2012.pdf First version, 2012 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hep:macppr:201203

Access Statistics for this paper

More papers in Macroeconomics and Finance Series from University of Hamburg, Department of Socioeconomics Contact information at EDIRC.
Bibliographic data for series maintained by Ulrich Fritsche ( this e-mail address is bad, please contact ).