Relationship lending: empirical evidence for Germany

Christian Schmieder, Christoph Memmel and Ingrid Stein ()

No 2007,14, Discussion Paper Series 2: Banking and Financial Studies from Deutsche Bundesbank

Abstract: Relationship lending is a common practice in credit financing all over the world, particularly in Germany. On the basis of a comprehensive data set comprising information on firm-bank relationships for more than 16,000 observations, this study analyses the determinants of relationship lending in Germany. We find that small, young and R&D-intensive firms tend to choose relationship lending. Furthermore, we find that firms with a higher creditworthiness are more likely to choose a relationship lender. We find that the importance of relationship lending stayed roughly constant since the mid 90s.

Keywords: Relationship banking; German banking system; SME (search for similar items in EconPapers)
JEL-codes: G21 G32 (search for similar items in EconPapers)
Date: 2007
New Economics Papers: this item is included in nep-ban, nep-eec and nep-ent
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Citations: View citations in EconPapers (26)

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Related works:
Working Paper: RELATIONSHIP LENDING - EMPIRICAL EVIDENCE FOR GERMANY (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:bubdp2:6799

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