Header

UZH-Logo

Maintenance Infos

Sorry, we're closed: Loan conditions when bank branches close and firms transfer to another bank


Ongena, Steven; Bonfim, Diana; Nogueira, Gil (2016). Sorry, we're closed: Loan conditions when bank branches close and firms transfer to another bank. Banco de Portugal-Working Papers 2016 7, University of Zurich.

Abstract

We study loan conditions when bank branches close and firms subsequently transfer to a branch of another bank in the vicinity. Such transfer loans allow us for the first time to observe the conditions granted when banks pool-price new applicants. Consistent with recent theoretical work on hold up in bank-firm relationships we find that transfer loans do not receive the discount in loan rates that prevails when firms otherwise switch banks. We hereby critically augment recent empirical evidence on dynamic cycles in loan rates.

Abstract

We study loan conditions when bank branches close and firms subsequently transfer to a branch of another bank in the vicinity. Such transfer loans allow us for the first time to observe the conditions granted when banks pool-price new applicants. Consistent with recent theoretical work on hold up in bank-firm relationships we find that transfer loans do not receive the discount in loan rates that prevails when firms otherwise switch banks. We hereby critically augment recent empirical evidence on dynamic cycles in loan rates.

Statistics

Downloads

3 downloads since deposited on 10 Nov 2016
3 downloads since 12 months
Detailed statistics

Additional indexing

Item Type:Working Paper
Communities & Collections:03 Faculty of Economics > Department of Banking and Finance
Dewey Decimal Classification:330 Economics
Language:English
Date:January 2016
Deposited On:10 Nov 2016 07:57
Last Modified:29 Aug 2017 10:57
Series Name:Banco de Portugal-Working Papers 2016
Free access at:Official URL. An embargo period may apply.
Official URL:https://www.bportugal.pt/pt-PT/BdP%20Publicaes%20de%20Investigao/WP201607.pdf
Other Identification Number:merlin-id:13311

Download

Preview Icon on Download
Preview
Content: Published Version
Filetype: PDF
Size: 2MB

Article Networks

TrendTerms

TrendTerms displays relevant terms of the abstract of this publication and related documents on a map. The terms and their relations were extracted from ZORA using word statistics. Their timelines are taken from ZORA as well. The bubble size of a term is proportional to the number of documents where the term occurs. Red, orange, yellow and green colors are used for terms that occur in the current document; red indicates high interlinkedness of a term with other terms, orange, yellow and green decreasing interlinkedness. Blue is used for terms that have a relation with the terms in this document, but occur in other documents.
You can navigate and zoom the map. Mouse-hovering a term displays its timeline, clicking it yields the associated documents.

Author Collaborations