Bank ownership type and banking relationships

By Allen N. Berger, L. Klapper, María Soledad Martínez Pería, R. Zaidi. 2006

284 citations recorded by the source corpus.

The authors formulate and test hypotheses about the role of bank ownership types-foreign, state-owned, and private domestic banks-in banking relationships, using data from India. The empirical results are consistent with all of their hypotheses with regard to foreign banks. These banks tend to serve as the main bank for transparent firms, and firms with foreign main banks are most likely to have multiple banking relationships, have the most relationships, and diversify relationships across bank ownership types. The data are also consistent with the hypothesis that firms with state-owned main banks are relatively unlikely to diversify across bank ownership types. However, state-owned banks often do not provide the main relationship for firms they are mandated to serve (for example, small, opaque firms), and the predictions of negative effects on multiple banking and number of relationships hold for only one type of state-owned bank.

Subfields: Accounting, Finance

View Paper: https://www.semanticscholar.org/paper/064c57d0f08d4bdbf1146047bd7c292ae02bd21c

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

In Accounting

In Finance

Citations in the corpus

Bank Ownership and Credit Over the Business Cycle: Is Lending by State Banks Less Procyclical? (2012, unknown): “Berger et al. (2005) find that the performance of state-owned banks in Argentina, for instance as measured by cost efficiency, was low in the 1990s, and improved considerably after privatization.”
The Effects of Focus versus Diversification on Bank Performance: Evidence from Chinese Banks (2010, background): “…ownership, foreign ownership) with the ownership dummies, for the reason that treating ownership as dummies instead of continuous variables has been quite a standard procedure in the banking literature (see, e.g., Saunders (1990), Altunbas (2005), Berger et al. (2005, 2008), Micco et al. (2007)).”
Do Cultural Differences Between Contracting Parties Matter? Evidence from Syndicated Bank Loans (2012, unknown): “(2007), Berger et al. (2008), and Giannetti and Ongena (2008) report that foreign banks extend loans primarily to the safest borrowers, who, because of their creditworthiness, should be offered favorable contract terms.”
What Determines the Composition of Banks' Loan Portfolios? Evidence from Transition Countries (2010, unknown): “Berger et al (2008) show that foreign banks i India tend to lend to older, larger and more transparent firms.”
Bank Financing for SMEs: Evidence Across Countries and Bank Ownership Types (2009, background): “…Udell, 2006 and de la Torre, Martinez Peria and Schmukler, 2008).4 When it comes to government-owned banks, while they are frequently charged with serving specific borrower groups, such as SMEs, studies have found that they often do not fulfill this task (See Berger et al., 2008 and Cole, 2009).”