INVESTIGADORES
MONTES ROJAS Gabriel Victorio
artículos
Título:
The role of bank relationships in the interbank market
Autor/es:
ASENA TEMIZSOY; GIULIA IORI; MONTES ROJAS, GABRIEL VICTORIO
Revista:
JOURNAL OF ECONOMIC DYNAMICS & CONTROL
Editorial:
NORTH-HOLLAND
Referencias:
Lugar: Amsterdam; Año: 2015 vol. 59 p. 118 - 141
ISSN:
0165-1889
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.
