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Contribution Details

Type Journal Article
Scope Discipline-based scholarship
Title The impact of competition on bank orientation
Organization Unit
Authors
  • Hans Degryse
  • Steven Ongena
Item Subtype Original Work
Refereed Yes
Status Published in final form
Language
  • English
Journal Title Journal of Financial Intermediation
Publisher Elsevier
Geographical Reach international
ISSN 1042-9573
Volume 16
Number 3
Page Range 399 - 424
Date 2007
Abstract Text How do banks react to increased competition? Recent banking theory significantly disagrees regarding the impact of competition on bank orientation-i.e., the choice of relationship-based versus transactional banking. We empirically investigate the impact of interbank competition on bank branch orientation. We employ a unique data set containing detailed information on bank-firm relationships. We find that bank branches facing stiff local competition engage considerably more in relationship-based lending. Our results illustrate that competition and relationships are not necessarily inimical.
Free access at Official URL
Official URL http://www.sciencedirect.com/science/article/pii/S1042957307000137
Digital Object Identifier 10.1016/j.jfi.2007.03.002
Other Identification Number merlin-id:11783
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