Journal of Banking & Finance Vol. 115 2020
The time has come for banks to say goodbye: New evidence on bank roles and duration effects in relationship terminations
Abstract
Examining a loan-level matched sample of Japanese banks and firms, we study the factors determining the termination of bank–firm relationships. We find that such terminations are mainly driven by bank-side factors and that these bank-driven terminations increase when banks’ capital conditions worsen. Furthermore, a longer relationship duration decreased the probability of termination substantially when the Japanese banking system was stable, whereas the duration effects weakened when the system became fragile.
- DOI
- 10.1016/j.jbankfin.2020.105813
- Volume
- 115
- Pages
- 105813
- Language
- en
- Sources
- openalex crossref bibtex:phds-export.bib