Lending Competition and Relationship Banking: Evidence from Japanese Prefectural Level Data

13 Pages Posted: 19 Oct 2009  

Yoshiaki Ogura

Waseda University, School of Political Science and Economics

Nobuyoshi Yamori

Kobe University - Research Institute for Economics & Business Administration

Date Written: October 14, 2009

Abstract

The question of whether more competition among banks increases relationship banking, which is predicted to improve credit availability for informationally opaque firms in theory, is a controversial issue in the banking literature. By using firm-level survey data in Japan, this paper provides evidence for the negative correlation between lending competition and the provision of relationship banking. This paper raises the question whether fierce interbank competition is always beneficial for small firms.

Keywords: relationship banking, lending competition

JEL Classification: G21, L11, L14, D82

Suggested Citation

Ogura, Yoshiaki and Yamori, Nobuyoshi, Lending Competition and Relationship Banking: Evidence from Japanese Prefectural Level Data (October 14, 2009). Available at SSRN: https://ssrn.com/abstract=1488667 or http://dx.doi.org/10.2139/ssrn.1488667

Yoshiaki Ogura (Contact Author)

Waseda University, School of Political Science and Economics ( email )

1-6-1 Nishi-waseda, Shinjuku-ku
Tokyo
Japan

Nobuyoshi Yamori

Kobe University - Research Institute for Economics & Business Administration ( email )

2-1, Rokkodai cho
Nada-ku
Kobe, 657-8501
Japan

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