Concentration of Banking Relationships in Switzerland: The Result of Firm Structure or Banking Market Structure?

Abstract

Relationship lending, multiple bank relationships, banking market structure, small business finance,

Competition and relationship lending: Friends or foes?

“…By contrast, Neuberger et al (2008) found only a weak or insignificant correlation between market concentration and relationship lending for Swiss small firms, while, consistent with the strategic theory of relationship lending, Memmel et al (2007) found that, in Germany, competition in local credit markets is positively associated with relationship lending and that small banks are more likely to act as a relationship lender.…”

“…Uchida et al (2008) validated these results in the Japanese context, by showing that small banks tend to have closer ties and repeated contacts with their borrowers and lend at a shorter distance than large banks. Lastly, Angelini et al (1998), Uzzi (1999) and Neuberger et al (2008) found that localism and cooperative ownership is also positively associated with the relational orientation of banks due to the deeply embedded ties with the local economy, and the peer nexus between lenders and borrowers. …”

“…The empirical evidence is mixed, with some studies finding a positive association between interbank competion and relationship lending (Petersen and Rajan, 1995;Fischer, 2000;Ogura, 2007Ogura, , 2010, while others finding the opposite or no correlation between the two phenomena (Memmel et al, 2007;Neuberger et al, 2008). No studies, however, investigates the possibility that interbank competition has heterogeneous effects on relationship lending, depending on the structure of the local credit market.…”

Análisis De Los Obstáculos Financieros De Las Pymes Para La Obtención De Crédito Y Las Variables Que Lo Facilitan

“…La concentración de la relación con bancos varía de acuerdo al país, Suiza en particular, de acuerdo a Neuberger et al (2008) es de los países con una alta concentración. De acuerdo a sus resultados, las pymes tiene relación bancarias con solo uno o pocos bancos, este número se incrementa con el tamaño de la empresa.…”

“…Lo que indica que, de acuerdo a nuestra muestra, la relación múltiple no está arraigada en las empresas. En Suiza, por ejemplo, Neuberger et al (2008) nos mencionan que las pymes cuentan con pocas relaciones bancarias, y el número de relaciones se incrementa con el tamaño.…”