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Assessing the impacts of bank mergers on small firms requires separating borrowers with single versus multiple banking …-relationship borrowers who "switch" to another bank following a merger will be less harmed than those whose relationship is "dropped" and not … to be dropped. We track post-merger performance and show that many dropped target-bank borrowers are harmed by the merger …
Persistent link: https://www.econbiz.de/10011597132
The purpose of this paper is to measure the potential impact of business-sector concentration on economic capital for loan portfolios and to explore a tractable model for its measurement. The empirical part evaluates the increase in economic capital in a multi-factor asset value model for...
Persistent link: https://www.econbiz.de/10011618414
conditional correlations between European bank stock indices. These correlations are used as an indication for the …
Persistent link: https://www.econbiz.de/10011448270
, small, and innovative firms) have a multitude of bank lenders, where one may be special in the sense of relationship lending …. However, theory does not tell us a lot about the economic rationale for relationship lending in the context of multiple bank … financing. To fill this gap, we analyze the optimal debt structure in a model that allows for multiple but asymmetric bank …
Persistent link: https://www.econbiz.de/10011450334
The German banking market is notorious for its low degree of market penetration by foreign financial institutions, suggesting that markets serviced by domestic and foreign banks are segmented. This paper employs a number of tests to determine whether activities of domestic and foreign banks are...
Persistent link: https://www.econbiz.de/10011472232
Persistent link: https://www.econbiz.de/10011532205
During the last years, gravity equations have leapt from the trade literature over into the literature on financial markets. Martin and Rey (2004) were the first to provide a theoretical model for cross-border asset trade, yielding a structural gravity equation that could be tested empirically....
Persistent link: https://www.econbiz.de/10011536009
Empirical research about structure, conduct and performance in banking markets has developed mostly independently from the microeconomic theory of banking. The present paper reviews the literature by focusing on the links between theoretical and empirical research. It considers basic conditions,...
Persistent link: https://www.econbiz.de/10011540098
Strong lending relationships between banks and small and medium-sized enterprises (SMEs) play a key role in the bank … long-term bank-customer relationships. The present paper takes a new look by considering also interactional variables which …
Persistent link: https://www.econbiz.de/10011540313
minimum standard is unlikely to exhibit adverse consequences for credit supply and bank profitability. …
Persistent link: https://www.econbiz.de/10011541056