Relationship lending: A source of support or a means of exploitation?
© 2020 Using a dataset from the State Bank of Pakistan containing each and every commercial loan generated in the economy from 2006 to 2013, we find that, on average, a longer relationship length is associated with lower risk premiums but higher collateral requirements. However, further examinat...
| Main Authors: | , , |
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| Format: | Journal Article |
| Published: |
2020
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| Online Access: | http://hdl.handle.net/20.500.11937/81793 |
| _version_ | 1848764419890216960 |
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| author | Hussain, I. Durand, Robert Harris, Mark |
| author_facet | Hussain, I. Durand, Robert Harris, Mark |
| author_sort | Hussain, I. |
| building | Curtin Institutional Repository |
| collection | Online Access |
| description | © 2020
Using a dataset from the State Bank of Pakistan containing each and every commercial loan generated in the economy from 2006 to 2013, we find that, on average, a longer relationship length is associated with lower risk premiums but higher collateral requirements. However, further examination paints a far more complex picture. The impact of relationship length on risk premiums and collateral varies substantially with the type of lender, as well as the type of borrower. We argue that conflicting empirical findings on relationship lending are the result of using datasets limited to certain types of borrowers or financial institutions. |
| first_indexed | 2025-11-14T11:19:04Z |
| format | Journal Article |
| id | curtin-20.500.11937-81793 |
| institution | Curtin University Malaysia |
| institution_category | Local University |
| last_indexed | 2025-11-14T11:19:04Z |
| publishDate | 2020 |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | curtin-20.500.11937-817932022-06-27T00:56:51Z Relationship lending: A source of support or a means of exploitation? Hussain, I. Durand, Robert Harris, Mark © 2020 Using a dataset from the State Bank of Pakistan containing each and every commercial loan generated in the economy from 2006 to 2013, we find that, on average, a longer relationship length is associated with lower risk premiums but higher collateral requirements. However, further examination paints a far more complex picture. The impact of relationship length on risk premiums and collateral varies substantially with the type of lender, as well as the type of borrower. We argue that conflicting empirical findings on relationship lending are the result of using datasets limited to certain types of borrowers or financial institutions. 2020 Journal Article http://hdl.handle.net/20.500.11937/81793 10.1016/j.gfj.2020.100549 fulltext |
| spellingShingle | Hussain, I. Durand, Robert Harris, Mark Relationship lending: A source of support or a means of exploitation? |
| title | Relationship lending: A source of support or a means of exploitation? |
| title_full | Relationship lending: A source of support or a means of exploitation? |
| title_fullStr | Relationship lending: A source of support or a means of exploitation? |
| title_full_unstemmed | Relationship lending: A source of support or a means of exploitation? |
| title_short | Relationship lending: A source of support or a means of exploitation? |
| title_sort | relationship lending: a source of support or a means of exploitation? |
| url | http://hdl.handle.net/20.500.11937/81793 |