| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 961127 | Journal of Financial Intermediation | 2007 | 26 Pages |
Abstract
How do banks react to increased competition? Recent banking theory significantly disagrees regarding the impact of competition on bank orientation-i.e., the choice of relationship-based versus transactional banking. We empirically investigate the impact of interbank competition on bank branch orientation. We employ a unique data set containing detailed information on bank-firm relationships. We find that bank branches facing stiff local competition engage considerably more in relationship-based lending. Our results illustrate that competition and relationships are not necessarily inimical.
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Authors
Hans Degryse, Steven Ongena,