Does bank ownership affect relationship lending: A developing country perspective

Result code in IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F70883521%3A28120%2F17%3A63516100" target="_blank" >RIV/70883521:28120/17:63516100 - isvavai.cz</a>

Result on the web

<a href="http://dx.doi.org/10.14254/2071-8330.2017/10-1/20" target="_blank" >http://dx.doi.org/10.14254/2071-8330.2017/10-1/20</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.14254/2071-8330.2017/10-1/20" target="_blank" >10.14254/2071-8330.2017/10-1/20</a>

Result language

angličtina

Original language name

Does bank ownership affect relationship lending: A developing country perspective

Original language description

In this paper we aim to explore how the type of bank ownership - local private banks, government-owned banks (public banks) and foreign banks - can affect relationship lending to small and medium enterprises (SMEs) by using a unique data set from Bangladeshi banking sector. We found that private banks differ from government-owned and foreign banks in terms of relationship lending and credit facilities to SMEs. More specifically, our results suggest that unlike government and foreign banks, private banks do consider soft information from relationship lending while setting up the loan spread to SMEs. We can also confirm that exclusive banking relationship or repeated banking with private banks can soften credit conditions (loan maturity and covenants). Moreover, we found empirical evidence that banking relationship is important for private banks in terms of SME credit risk evaluation. Finally, as according to our expectation, the results confirm that regardless of prior relationship, private banks are more depended on collateral-based lending to SMEs than government-owned or foreign banks.

Czech name

—

Czech description

—

Type

J_SC - Article in a specialist periodical, which is included in the SCOPUS database

CEP classification

—

OECD FORD branch

50206 - Finance

Project

—

Continuities

S - Specificky vyzkum na vysokych skolach

Publication year

2017

Confidentiality

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Name of the periodical

Journal of International Studies

ISSN

2071-8330

e-ISSN

—

Volume of the periodical

10

Issue of the periodical within the volume

1

Country of publishing house

PL - POLAND

Number of pages

12

Pages from-to

277-288

UT code for WoS article

—

EID of the result in the Scopus database

2-s2.0-85019638228