Abstract

http://ssrn.com/abstract=285937
 
 

References (92)



 
 

Citations (164)



 


 



Small Business Credit Availability and Relationship Lending: The Importance of Bank Organisational Structure


Allen N. Berger


University of South Carolina - Moore School of Business; Wharton Financial Institutions Center; Tilburg University - CentER

Gregory F. Udell


Indiana University - Department of Finance

September 2001

FEDS Working Paper No. 2001-36

Abstract:     
This paper models the inner workings of relationship lending, the implications for bank organizational structure, and the effects of shocks to the economic environment on the availability of relationship credit to small businesses. Relationship lending depends on the accumulation over time by the loan officer of "soft" information. Because the loan officer is the repository of this soft information, agency problems are created throughout the organization that are best resolved by structuring the bank as a small, closely-held organization with few managerial layers. The shocks analyzed include technological innovations, regulatory regime shifts, banking industry consolidation, and monetary policy shocks.

Number of Pages in PDF File: 36

Keywords: Banks, small business, mergers, relationship lending, organisational structure

JEL Classification: G21, G28, G34, L23

working papers series


Download This Paper

Date posted: October 4, 2001  

Suggested Citation

Berger, Allen N. and Udell, Gregory F., Small Business Credit Availability and Relationship Lending: The Importance of Bank Organisational Structure (September 2001). FEDS Working Paper No. 2001-36. Available at SSRN: http://ssrn.com/abstract=285937 or http://dx.doi.org/10.2139/ssrn.285937

Contact Information

Allen N. Berger (Contact Author)
University of South Carolina - Moore School of Business ( email )
1705 College St
Francis M. Hipp Building
Columbia, SC 29208
United States
803-576-8440 (Phone)
803-777-6876 (Fax)
Wharton Financial Institutions Center
Philadelphia, PA 19104-6367
United States
Tilburg University - CentER
P.O. Box 90153
Tilburg, DC 5000 LE
Netherlands
Gregory F. Udell
Indiana University - Department of Finance ( email )
1309 E. 10th St.
Bloomington, IN 47405
United States
Feedback to SSRN


Paper statistics
Abstract Views: 5,622
Downloads: 1,510
Download Rank: 5,251
References:  92
Citations:  164

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo6 in 0.328 seconds