SME Loan Pricing and Lending Relationships in Germany: A New Look

Eric Lehmann and Doris Neuberger ()

No 18, Thuenen-Series of Applied Economic Theory from University of Rostock, Institute of Economics, Germany

Abstract: Strong lending relationships between banks and small and medium-sized enterprises (SMEs) play a key role in the bank-based financial system of Germany. So far, they have been mainly described by the notion of an housebank and transactional features of long-term bank-customer relationships. The present paper takes a new look by considering also interactional variables which try to measure social relations between loan officer and firm manager. We find that these variables do affect loan pricing, but that their influence varies according to firm age and housebank status.

Keywords: Banking; Relationship Lending; Small Business Finance (search for similar items in EconPapers)
JEL-codes: G2 L2 (search for similar items in EconPapers)
Date: 1998
View list of references

Downloads: (external link)
http://www.wiwi.uni-rostock.de/fileadmin/Institute ... pdf/wp018thuenen.pdf First version, 1998 (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: http://EconPapers.repec.org/RePEc:ros:wpaper:18

Access Statistics for this paper

More papers in Thuenen-Series of Applied Economic Theory from University of Rostock, Institute of Economics, Germany
Contact information at EDIRC.
Series data maintained by Doris Neuberger ().