Not logged in.
Quick Search - Contribution
Contribution Details
| Type | Journal Article |
| Scope | Discipline-based scholarship |
| Title | Lending relationships, bank default and economic activity |
| Organization Unit | |
| Authors |
|
| Item Subtype | Original Work |
| Refereed | Yes |
| Status | Published in final form |
| Language |
|
| Journal Title | International Journal of the Economics of Business |
| Publisher | Taylor & Francis |
| Geographical Reach | international |
| ISSN | 1357-1516 |
| Volume | 6 |
| Number | 2 |
| Page Range | 257 - 280 |
| Date | 1999 |
| Abstract Text | The paper reviews contributions in the literature, which lend theoretical and empirical credibility to the idea that the banking relationship is valuable and important for the firm. Banks offer a lending relationship as the solution to the firm's ongoing credit needs. Bank default disrupts this relationship. Hence risk in the banking sector influences the value of the relationship, the cost of corporate finance, and the level and growth of real activity. As bank default is often the result of fraud and internal irregularities, it is hard to predict. Bank default affects the economy through a number of different channels. The loss of the relationship, benefit for the firm is an important route through which the health of the banking sector influences real activity. |
| Digital Object Identifier | 10.1080/13571519984269 |
| Other Identification Number | merlin-id:11798 |
| PDF File |
Download from ZORA
|
| Export |
BibTeX
EP3 XML (ZORA)
|
| Keywords | Lending relationship, bank default |