 THE CREDIT RELATIONSHIP BETWEEN BANKS AND COMPANIES AND ITS EFFECTS ON THE REAL ECONOMYVoroneanu Constantin-Bogdan ()
Management Strategies Journal, 2013, vol. 21, issue 3, 105-112 Abstract: Among the relationships between companies and the financial - banking market representatives, those which are determinate by the lending activity hold a special place. Despite of various alternatives to mobilize the necessary funds to cover the capital needs arising from the current or investment activity, bank loans are the main source of funding for most of the companies. This dominance is assured by the benefits that a bank loan offers to companies and which influence directly and positively their economic and financial situation. Of course there are a number of risks assumed by the company when calling to bank financing, risks which can affect negatively their business if it occurs. Given the important role that companies play in generating of the real flows in the economy, all these positive or negative effects directly impact on the quality of economic and social life at the macro level. For this reason it is very important that between the bank and the company to be always a good communication and transparency in the information requested or offered, and the collaboration between these two types of organizations to carry on a partnership basis. Keywords: bank; companies; credit relationship; real economy (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:brc:journl:v:21:y:2013:i:3:p:105-112 Access Statistics for this article More articles in Management Strategies Journal from Constantin Brancoveanu University |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.