• Medientyp: E-Book; Bericht
  • Titel: Bank Lending, Geographical Distance, and Credit risk: An Empirical Assessment of the Church Tower Principle
  • Beteiligte: Carling, Kenneth [VerfasserIn]; Lundberg, Sofia [VerfasserIn]
  • Erschienen: Stockholm: Sveriges Riksbank, 2002
  • Sprache: Englisch
  • Schlagwörter: credit rationing ; Asymmetric information ; G21 ; D82 ; duration model
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  • Beschreibung: Does the Church Tower Principle, i.e. geographical proximity between borrowing firm and lending bank, matter in credit risk management? If so, the bank might expose itself to a greater risk by lending to distant firms and should therefore respond by rationing them harder. In this paper we incorporate the Church Tower Principle in a simple theoretical model and derive implications that are empirically testable. We use data on corporate loans granted 1994 to 2000 by a leading Swedish bank and find no evidence that the principle applies.
  • Zugangsstatus: Freier Zugang