Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

The Continuity of the Transaction Relationship Between a Bank and a Borrower

The Continuity of the Transaction Relationship Between a Bank and a Borrower Abstract This paper analyses the influence of the number of past transactions on the continuity of the transaction relationship between a bank and a borrower. It is shown that banks, in deciding whether or not to maintain a transaction relationship with a borrower, fall into one of two categories: if the average of past returns from borrowers is equal, either a bank is more likely to maintain transaction relationships with those whose number of past transactions is larger, or it is indifferent to the number of past transactions. This result holds whether the bank is risk-averse or risk-neutral. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png The Japanese Economic Review Springer Journals

The Continuity of the Transaction Relationship Between a Bank and a Borrower

The Japanese Economic Review , Volume 49 (4): 7 – Dec 1, 1998

Loading next page...
 
/lp/springer-journals/the-continuity-of-the-transaction-relationship-between-a-bank-and-a-2iLT8DnH0M

References (3)

Publisher
Springer Journals
Copyright
1998 Japanese Economic Association
ISSN
1352-4739
eISSN
1468-5876
DOI
10.1111/1468-5876.00097
Publisher site
See Article on Publisher Site

Abstract

Abstract This paper analyses the influence of the number of past transactions on the continuity of the transaction relationship between a bank and a borrower. It is shown that banks, in deciding whether or not to maintain a transaction relationship with a borrower, fall into one of two categories: if the average of past returns from borrowers is equal, either a bank is more likely to maintain transaction relationships with those whose number of past transactions is larger, or it is indifferent to the number of past transactions. This result holds whether the bank is risk-averse or risk-neutral.

Journal

The Japanese Economic ReviewSpringer Journals

Published: Dec 1, 1998

Keywords: economics, general; microeconomics; macroeconomics/monetary economics//financial economics; econometrics; development economics; economic history

There are no references for this article.