Academic Journal
Do Relationship Loans Have Lower Default Rates? Evidence from 1 Million Loans
| العنوان: | Do Relationship Loans Have Lower Default Rates? Evidence from 1 Million Loans |
|---|---|
| المؤلفون: | Manju Puri, Jörg Rocholl, Sascha Steffen |
| المساهمون: | The Pennsylvania State University CiteSeerX Archives |
| المصدر: | http://www.fma.org/NY/Papers/LendingRelationships_12_18_09.pdf. |
| سنة النشر: | 2009 |
| المجموعة: | CiteSeerX |
| الوصف: | We use a unique database of the universe of consumer loans by savings banks in Germany to understand the value of bank-retail customer relationships. Do prior relationships matter when banks grant loans, and if so, what kind of relationships matter? We examine different types of relationships by length, type, breadth and depth. We find prior relationships, characterized in a number of different ways – whether pure savings, transactions, credit related, or multi-prong, significantly reduce borrower default probability. To understand why relationship loans default less we examine loan applications and the bank decision acceptance decision. Using selection models we find that the lower default rate is explained by better screening by banks of loans with prior relationships, as well as enhanced monitoring. Our results provide evidence on the value of different kinds of relationships of retail customers with banks, and empirically document the sources of these benefits. |
| نوع الوثيقة: | text |
| وصف الملف: | application/pdf |
| اللغة: | English |
| Relation: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.601.6694; http://www.fma.org/NY/Papers/LendingRelationships_12_18_09.pdf |
| الاتاحة: | http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.601.6694 http://www.fma.org/NY/Papers/LendingRelationships_12_18_09.pdf |
| Rights: | Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
| رقم الانضمام: | edsbas.553E6EFA |
| قاعدة البيانات: | BASE |
| الوصف غير متاح. |