EconPapers    
Economics at your fingertips  
 

Relationship Banking in the Residential Mortgage Market? Evidence from Switzerland

Martin Brown () and Matthias Hoffmann

No 1310, Working Papers on Finance from University of St. Gallen, School of Finance

Abstract: We examine to what extent mortgage lending is characterized by strong relationships between banks and their borrowers. Our analysis is based on detailed survey data covering all current bank relations for a sample of 1,481 Swiss households out of which 687 have a mortgage. We document that mortgage borrowers maintain significantly more bank relations than comparable households without a mortgage. However, this does not imply that mortgage relations are loose. Comparing mortgage relations to other bank relations of the same households we find that mortgage relations are used for a broader scope of transactions and are held with banks that are located closer to the household. Examining the heterogeneity of mortgage relations across households, we find that financially sophisticated households are less likely to hold their mortgage with a local bank.

Keywords: Mortgage loans; Household finance; Relationship banking. (search for similar items in EconPapers)
JEL-codes: G21 D14 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2013-08, Revised 2015-06
New Economics Papers: this item is included in nep-ban and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://ux-tauri.unisg.ch/RePEc/usg/sfwpfi/WPF-1310.pdf (application/pdf)

Related works:
Journal Article: Relationship Banking in the Residential Mortgage Market? Evidence from Switzerland (2016) Downloads
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:usg:sfwpfi:2013:10

Access Statistics for this paper

More papers in Working Papers on Finance from University of St. Gallen, School of Finance Contact information at EDIRC.
Bibliographic data for series maintained by Geraldine Frei ().

 
Page updated 2020-02-23
Handle: RePEc:usg:sfwpfi:2013:10