Relationship banking and SMEs: A theoretical analysis
- 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.
| Verfasserangaben: | Timo BaasORCiDGND, Mechthild SchrootenORCiDGND |
|---|---|
| DOI: | https://doi.org/10.1007/s11187-006-0018-7 |
| ISSN: | 0921-898X |
| Titel des übergeordneten Werks (Englisch): | Small business economics : an international journal |
| Verlag: | Springer |
| Verlagsort: | Dordrecht |
| Publikationstyp: | Wissenschaftlicher Artikel |
| Sprache: | Englisch |
| Jahr der Erstveröffentlichung: | 2006 |
| Erscheinungsjahr: | 2006 |
| Datum der Freischaltung: | 02.06.2020 |
| Freies Schlagwort / Tag: | accounting; financial constraints; relationship banking; small and medium sized enterprises |
| Band: | 27 |
| Seitenanzahl: | 11 |
| Erste Seite: | 127 |
| Letzte Seite: | 137 |
| Organisationseinheiten: | Wirtschafts- und Sozialwissenschaftliche Fakultät / Wirtschaftswissenschaften |
| Peer Review: | Referiert |
| Publikationsweg: | Open Access |
| Open Access / Green Open-Access |
