Does bank efficiency influence the cost of credit?

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F67985998%3A_____%2F19%3A00517975" target="_blank" >RIV/67985998:_____/19:00517975 - isvavai.cz</a>

Nalezeny alternativní kódy

RIV/00216208:11640/19:00504918

Výsledek na webu

<a href="https://doi.org/10.1016/j.jbankfin.2019.05.002" target="_blank" >https://doi.org/10.1016/j.jbankfin.2019.05.002</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1016/j.jbankfin.2019.05.002" target="_blank" >10.1016/j.jbankfin.2019.05.002</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Does bank efficiency influence the cost of credit?

Popis výsledku v původním jazyce

Using a large sample of firms from nine European countries, this study examines the relationship between bank efficiency and the cost of credit for borrowing firms. We hypothesize that bank efficiency – the ability of banks to operate at lower costs – is associated with lower loan rates and thus lower cost of credit. Combining firm-level and bank-level data, we find support for this prediction. The effect of bank efficiency on the cost of credit varies with firm and bank size. Bank efficiency reduces the cost of credit for SMEs, but does not exert a significant influence for either micro companies or large firms. Furthermore, the effect is driven by large banks, where improvements in bank efficiency tend to be strongly associated with lower cost of credit. We also find that lower bank competition facilitates the transmission of greater bank efficiency to lower cost of credit. Overall, our results indicate that measures that increase bank efficiency can foster access to credit.

Název v anglickém jazyce

Does bank efficiency influence the cost of credit?

Popis výsledku anglicky

Using a large sample of firms from nine European countries, this study examines the relationship between bank efficiency and the cost of credit for borrowing firms. We hypothesize that bank efficiency – the ability of banks to operate at lower costs – is associated with lower loan rates and thus lower cost of credit. Combining firm-level and bank-level data, we find support for this prediction. The effect of bank efficiency on the cost of credit varies with firm and bank size. Bank efficiency reduces the cost of credit for SMEs, but does not exert a significant influence for either micro companies or large firms. Furthermore, the effect is driven by large banks, where improvements in bank efficiency tend to be strongly associated with lower cost of credit. We also find that lower bank competition facilitates the transmission of greater bank efficiency to lower cost of credit. Overall, our results indicate that measures that increase bank efficiency can foster access to credit.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

<a href="/cs/project/GA19-20771S" target="_blank" >GA19-20771S: Firemní růst a výkonnost</a><br>

Návaznosti

I - Institucionalni podpora na dlouhodoby koncepcni rozvoj vyzkumne organizace

Rok uplatnění

2019

Kód důvěrnosti údajů

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

Název periodika

Journal of Banking & Finance

ISSN

0378-4266

e-ISSN

—

Svazek periodika

105

Číslo periodika v rámci svazku

August

Stát vydavatele periodika

NL - Nizozemsko

Počet stran výsledku

12

Strana od-do

62-73

Kód UT WoS článku

000472698500005

EID výsledku v databázi Scopus

2-s2.0-85065904726