Citation

Discussion Paper Details

Please find the details for DP9695 in an easy to copy and paste format below:

Full Details   |   Bibliographic Reference

Full Details

Title: A Century of Firm ? Bank Relationships: Did Banking Sector Deregulation Spur Firms to Add Banks and Borrow More?

Author(s): Fabio Braggion and Steven Ongena

Publication Date: October 2013

Keyword(s): banking sector, competition and multiple banking

Programme Area(s): Financial Economics

Abstract: We study how firm-bank relationships and corporate financing evolved during the Twentieth century in Britain. We document a remarkable transition from single to multiple relationships. Transparent, larger, and global companies were more likely to add a bank, especially when located in more competitive local banking markets. Deregulation and intensifying competition in the banking sector during the 1970s spurred banks to supply credit through multilateral arrangements. Firms that added a bank following deregulation borrowed more than similar firms that did not add a bank, and their bank debt expanded while their trade credit and share issuance contracted.

For full details and related downloads, please visit: https://cepr.org/active/publications/discussion_papers/dp.php?dpno=9695

Bibliographic Reference

Braggion, F and Ongena, S. 2013. 'A Century of Firm ? Bank Relationships: Did Banking Sector Deregulation Spur Firms to Add Banks and Borrow More?'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=9695