Bank Relationships: A Review

Smith, David C.; Ongena, Steven

Bank Relationships: A Review

Performance of Financial Institutions: Efficiency, Innovation, Regulations (P. Harker And S.A. Zenios, Ed.), Cambridge University Press

Posted: 16 Dec 1998

See all articles by David C. Smith

David C. Smith

University of Virginia - McIntire School of Commerce

Steven Ongena

University of Zurich - Department Finance; Swiss Finance Institute; KU Leuven; NTNU Business School; Centre for Economic Policy Research (CEPR)

There are 2 versions of this paper

Abstract

This paper reviews the theoretical and empirical literature on bank relationships. We begin with a the event study evidence on bank loan announcements and trace our way forward through an overview of papers discussing the benefits and costs of bank relationships. We follow with a review of the evidence on the nature and strength of bank relationships, covering such topics as duration, scope, control, and number of bank relationships. We also discuss the importance of bank relationships for aggregate economic activity.

JEL Classification: C41, G21

Suggested Citation: Suggested Citation

Smith, David Carl and Ongena, Steven R. G., Bank Relationships: A Review. Performance of Financial Institutions: Efficiency, Innovation, Regulations (P. Harker And S.A. Zenios, Ed.), Cambridge University Press, Available at SSRN: https://ssrn.com/abstract=142490