Artículo
The role of bank relationships in the interbank market
Fecha de publicación:
10/2015
Editorial:
North-holland
Revista:
Journal Of Economic Dynamics & Control
ISSN:
0165-1889
Idioma:
Inglés
Tipo de recurso:
Artículo publicado
Clasificación temática:
Resumen
This paper empirically explores the effect of bank lending relationships in the interbank market. We use data from the e-MID market that represents the only transparent electronic platform in Europe and USA, unaffected by search costs and other fictions. We show that stable relationships exist and that they played a significant role during the 2007–2008 financial crisis. Trading with preferred counterparts is associated with more favorable rates for both lenders and borrowers, and carries larger trading volumes. The results point to a peer monitoring role of relationship lending, which contributes, at a time of financial distress, to a smooth liquidity redistribution among banks. Relationship lending thus plays an important positive role for financial stability.
Palabras clave:
Interbank Market
,
Lending Relationship
,
Overnight Loans
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Articulos(SEDE CENTRAL)
Articulos de SEDE CENTRAL
Articulos de SEDE CENTRAL
Citación
Temizsoy, Asena; Iori, Giulia; Montes Rojas, Gabriel Victorio; The role of bank relationships in the interbank market; North-holland; Journal Of Economic Dynamics & Control; 59; 10-2015; 118-141
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