We studied information and interaction processes in six lending relationships between a universal bank and medium sized firms. The study is based on the credit files of the respective firms. If no problems occur in these lending relationships, bank monitoring is based mainly on cheap,...

This paper empirically examines the role of soft information in the competitive interaction between relationship and transaction banks. Soft information can be interpreted as a private signal about the quality of a firm that is observable to a relationship bank, but not to a transaction bank. We...

A relationship between banks and firms that emphasizes the qualitative aspects of the enterprises may represent a response to the increasing difficulties of the credit system in financing a business system in which the intangible assets are the main source of value. In this view, an empirical...