The Benefits of Bank Firm Relationships When Credit is Unconstrained: The Case of French SMEs

28 Pages Posted: 10 Jun 2015

See all articles by Jean-Christophe Statnik

Jean-Christophe Statnik

University of Lille II - University of Lille LSMRC & ISA

Sebastien Dereeper

Université Lille Nord de France - Lille School of Management Research Center (LSMRC)

Frederic Lobez

University of Lille II - GERME Research Center

Date Written: April 22, 2015

Abstract

According to Kremp and Sevestre (2013), French firms did not suffer from credit restriction during the period 2004-2010. This study seeks to identify the benefits of bank-firm relationships when credit is unconstrained. By using a unique set of data collected from a French relationship bank (CMNE), covering the period 1996-2009, the study shows that, depending on the health of the economy, the benefits of bank-firm relationships may take the form of a weaker credit spread. The results are complementary with those of Sharpe (1990); they indicate that weaker interest rates appear only in normal periods, and hold up is a problem only during economic recessions.

Keywords: banks, business cycle, relationship lending, small business

JEL Classification: G21

Suggested Citation

Statnik, Jean-Christophe and Dereeper, Sebastien and Lobez, Frederic, The Benefits of Bank Firm Relationships When Credit is Unconstrained: The Case of French SMEs (April 22, 2015). Available at SSRN: https://ssrn.com/abstract=2597801 or http://dx.doi.org/10.2139/ssrn.2597801

Jean-Christophe Statnik (Contact Author)

University of Lille II - University of Lille LSMRC & ISA ( email )

1, rue de Mulhouse
Lille, 59000
France

Sebastien Dereeper

Université Lille Nord de France - Lille School of Management Research Center (LSMRC) ( email )

1, Place Déliot
Lille, 59000
France

Frederic Lobez

University of Lille II - GERME Research Center ( email )

1, Place Deliote BP 381
Lille, 59000
France
03 20 99 74 75 (Phone)
03-20-90-77-02 (Fax)

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