Article ID Journal Published Year Pages File Type
5089580 Journal of Banking & Finance 2013 10 Pages PDF
Abstract
► Trust reduces agency costs and transaction costs in banking relationships. ► When loan managers rely on trust they can better evaluate firm's creditworthiness. ► Benefits can be passed onto the SMEs in the form of increased credit. ► Benefits can be passed onto the SMEs in the form of reduced credit constraints. ► SMEs managers should nurture trusting relationships.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
Authors
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