Distance, lending relationships, and competition

• 成果类型: Article
• 署名作者: Degryse, H; Ongena, S
• 署名单位: KU Leuven; Tilburg University
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2005.00729.x
• 发表日期: 2005
• 页码: 231-266
• 关键词: Asymmetric information; switching costs; credit; banking; DISCRIMINATION; geography; country; CHOICE; tests

摘要

We study the effect on loan conditions of geographical distance between firms, the lending bank, and all other banks in the vicinity. For our study, we employ detailed contract information from more than 15,000 bank loans to small firms comprising the entire loan portfolio of a large Belgian bank. We report the first comprehensive evidence on the occurrence of spatial price discrimination in bank lending. Loan rates decrease with the distance between the firm and the lending bank and increase with the distance between the firm and competing banks. Transportation costs cause the spatial price discrimination we observe.