The importance of bank seniority for relationship lending
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The importance of bank seniority for relationship lending by Stanley D. Longhofer

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Published by Bank for International Settlements, Monetary and Economic Dept. in Basle, Switzerland .
Written in English

Subjects:

  • Bank loans -- Mathematical models.,
  • Customer relations.,
  • Banks and banking.

Book details:

Edition Notes

Statementby Stanley D. Longhofer and João A.C. Santos.
SeriesBIS working papers,, no. 58, BIS working papers (Online) ;, no. 58.
ContributionsSantos, João Cabral dos., Bank for International Settlements. Monetary and Economic Dept.
Classifications
LC ClassificationsHG3879
The Physical Object
FormatElectronic resource
ID Numbers
Open LibraryOL3285851M
LC Control Number2003616613

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Journals & Books; Help Regular Article. The Importance of Bank Seniority for Relationship Lending Our paper addresses this puzzling contradiction by showing that bank seniority plays an important role in encouraging the formation of valuable bank–firm relationships. The intuition behind our model lies in the fact that once the firm's Cited by: This paper brings together two seemingly unrelated branches of the literature that focuses on different aspects of a bank's interaction with its borrowers: the relative priority of bank debt, and the role of banks as "relationship lenders". Specifically, we show that bank seniority plays an important role in encouraging the formation of ongoing bank/firm relationships. Downloadable (with restrictions)! This paper brings together two seemingly unrelated branches of the literature that focuses on different aspects of a bank's interaction with its borrowers: the relative priority of bank debt, and the role of banks as "relationship lenders". Specifically, we show that bank seniority plays an important role in encouraging the formation of ongoing bank/firm. Request PDF | The Importance of Bank Seniority for Relationship Lending | The idea that banks exist to reduce the costs of monitoring is central to modern theories of financial intermediation. The.

  Our paper addresses this puzzling contradiction by showing that bank seniority plays an important role in encouraging the formation of valuable bank-firm relationships. The intuition behind our model lies in the fact that once the firm's prospects have deteriorated, junior creditors have incentives much like those of the firm's shareholders.   Specifically, we show that bank seniority plays an important role in encouraging the formation of ongoing bank/firm relationships. Because the bank is senior, it is more able to reap the benefits from its relationship with the firm; because the firm has a relationship with a bank, it is more willing to exert effort, thus reducing the impact of. Suggested citation: Longhofer, Stanley, and Joao Cabral dos Santos, “The Importance of Bank Seniority for Relationship Lending,” Federal Reserve Bank of Cleveland, Working Paper, no. Cited by: The Importance of Bank Seniority for Relationship Lending () Cached. Download Links [] bank seniority relationship lending federal reserve bank anjan thakor seminar participant international settlement new york anonymous.

BibTeX @ARTICLE{Longhofer00theimportance, author = {Stanley D. Longhofer and João A. C. Santos and Stanley D. Longhofer and João A. C. Santos}, title = {The Importance of Bank Seniority for Relationship Lending}, journal = {Journal of Financial Intermediation}, year = {}, pages = {}}. The Importance of Bank Seniority for Relationship Lending By Stanley D. Longhofer and João A. C. SantosStanley D. Longhofer and João A. C. SantosStanley D. Longhofer, Stephen L. Clark, Chair Real, Joe Bisignano, Mark Flannery, Craig Furfine, Charlie Kahn, Ronald Mann, Mitch Petersen, John Rozycki, Bruce Smith, Kostas Tsatsaronis, Stanley D. The Importance of Bank Seniority for Relationship Lending. by Stanley D. Longhofer of the Federal Reserve Bank of Cleveland, and Jo o A.C. Santos of the Bank for International Settlements. September Abstract: The idea that banks exist to reduce the costs of monitoring is central to modern theories of financial intermediation. The fact. The Importance of Bank Seniority for Relationship Lending. Stanley D. Longhofer and Joao Santos. Journal of Financial Intermediation, , vol. 9, issue 1, Date: References: View references in EconPapers View complete reference list from CitEc Citations: View citations in EconPapers (66) Track citations by RSS feed. Downloads.