Journal of Financial Intermediation Vol. 14 No. 4 2005

The profitability of bank–borrower relationships

O. Emre Ergungor^1,2

¹ Cleveland Research (United States) · ² Federal Reserve Bank of Cleveland

Abstract

This paper investigates the profitability of relationship banking within the context of small business loans made by community banks. Theory implies that competition reduces the benefits of bank-borrower relationships, making relationship loans more risky and less profitable. I present evidence for community banks that is consonant with this implication.

DOI

10.1016/j.jfi.2004.09.002

Volume

14

Issue

4

Pages

485-512

Language

en

Sources

bibtex:phds-export.bib openalex crossref

Cite

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