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Contribution Details

Type Conference Presentation
Scope Discipline-based scholarship
Title Keep Walking? Geographical Proximity, religion,and Relationship Banking
Organization Unit
Authors
  • Steven Ongena
  • Thorsten Beck
  • İlkay Şendeniz-Yüncü
Presentation Type paper
Item Subtype Original Work
Refereed Yes
Status Published in final form
Language
  • English
Event Title Islamic Banking & Finance Research Conference
Event Type conference
Event Location Riyadh
Event Start Date March 13 - 2016
Event End Date March 15 - 2016
Abstract Text We investigate the geographical proximity of firms to their relationship banks. We find that (compared to the firms` average bank) Islamic, foreign and state banks are more, and large banks less remote to their borrowers. We also find that the probability for a firm to connect to a bank substantially decreases in distance, but that the choice along bank characteristics determines how potent distance is in its impact. For example, if the bank in the vicinity is an Islamic bank, distance plays a more muted role, especially in cities in the Mediterranean and Aegean regions, as well as in cities with a high conservative party vote and higher trust in religious institutions. Also when engaging with small, foreign or state banks physical distance no longer plays a crucial role in determining the firms` choices. Overall these findings suggest that the presence of banks with certain characteristics in the vicinity of firms may determine the within-firm and across-firm configurations of observable firm-bank connections.
PubMed ID http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2635385
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