This paper is an empirical examination of the existence of the inside bank premium arising from relationship banking … extended by an inside bank when there exist asymmetries between the inside bank and outside banks, such as the information … advantage of the inside bank or the implicit insurance and other borrower-specific services exclusively provided by the inside …

During the last years the lending business has come under considerable competitive pressure and bank managers often … are able to explain the financial performance of bank lending activities. The analysis is based on the CFS-data-set that …