@article{BaasSchrooten2006,
  author    = {Baas, Timo and Schrooten, Mechthild},
  title     = {Relationship banking and SMEs: A theoretical analysis},
  series = {Small business economics : an international journal},
  volume    = {27},
  journal   = {Small business economics : an international journal},
  publisher = {Springer},
  address   = {Dordrecht},
  issn      = {0921-898X},
  doi       = {10.1007/s11187-006-0018-7},
  pages     = {127 -- 137},
  year      = {2006},
  abstract  = {Reliable information on small- and medium-sized enterprises (SMEs) is rare and costly for financial intermediaries. Therefore relationship banking is often considered as the appropriate lending technique. In this paper we offer a theoretical model to analyze relationship banking and the pricing behavior of banks in a Bertrand competition framework with monitoring costs. We show that the lack of reliable information leads to comparable high interest rates even if a long-term relationship between borrower and bank exists. The paper offers a theoretical explanation why SMEs often are faced with borrowing constraints.},
  language  = {en}
}