Since 2014
Banking Consolidation and Bank-Firm Credit Relationships: the Role of Geographical Features and Relationship Characteristics
Review of Economics and Institutions
View Archive Info| Field | Value | |
| Title |
Banking Consolidation and Bank-Firm Credit Relationships: the Role of Geographical Features and Relationship Characteristics
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| Creator |
Beretta, Enrico; Bank of Italy
Del Prete, Silvia; Banca d'Italia |
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| Subject |
Banking
relationship banking, mergers and acquisitions, firms’ agglomerations G21; G34; L14; L22 |
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| Description |
Using data on bank credit relationships, the paper shows that after a merger or an acquisition involving two or more banks which had previously jointly financed the same firm, the share of credit granted to the client by the consolidated intermediaries moderately decreases over three years. This does not necessarily imply a reduction of the overall credit granted to the firm, because after mergers and acquisitions the probability of diversifying the mix of lenders increases. A geographical closeness between bank and firm, or a membership of the firm in an industrial district, by reducing information asymmetries and the cost of soft information, seem to mitigate or offset the decrease in the share of credit provided by consolidated banks. By contrast, if a firm is in financial distress or located in the South of Italy, diversification is significantly enhanced.
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| Publisher |
University of Perugia
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| Contributor |
—
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| Date |
2013-12-30
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://www.rei.unipg.it/rei/article/view/125
10.5202/rei.v4i3.125 |
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| Source |
Review of Economics and Institutions; Vol 4, No 3 (2013); 46
2038-1379 2038-1344 |
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| Language |
eng
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| Relation |
http://www.rei.unipg.it/rei/article/view/125/123
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| Rights |
As further described in our submission agreement, in consideration for publication of the article, the authors assign to the University of Perugia all copyright in the article, subject to the expansive personal-use exceptions described below. Attribution and Usage Policies Reproduction, posting, transmission or other distribution or use of the article or any material therein, in any medium as permitted by a personal-use exemption or by written agreement of the University of Perugia, requires credit to University of Perugia as copyright holder (e.g., University of Perugia © 20011). Personal-use ExceptionsThe following uses are always permitted to the author(s) and do not require further permission from University of Perugia provided the author does not alter the format or content of the articles, including the copyright notification:Posting of the article on the author(s) personal website, provided that the website is non-commercial;Posting of the article on the internet as part of a non-commercial open access institutional repository or other non-commercial open access publication site affiliated with the author(s)'s place of employment;Posting of the article on a non-commercial course website for a course being taught by the author at the university employing the author; andStorage and back-up of the article on the author's computer(s) and digital media (e.g., diskettes, back-up servers, Zip disks, etc.), provided that the article stored on these computers and media is not readily accessible by persons other than the author(s).People seeking an exception, or who have questions about use, should contact The Editor at editor.rei.journal@gmail.com
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