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Specialization in banking

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Bibliographic Details
Authors and Corporations: Blickle, Kristian (Author), Parlatore, Cecilia (Author), Saunders, Anthony (Author)
Other Authors: Parlatore, Cecilia [Author] • Saunders, Anthony 1949- [Author]
Type of Resource: E-Book
Language: English
published:
Series: Federal Reserve Bank of New York: Staff reports ; no. 967 (May 2021)
Subjects:
bank specialization
bank concentration
asymmetric information
loan performance
bank performance
Graue Literatur
Source: Verbunddaten SWB
Lizenzfreie Online-Ressourcen
Description
Summary: Using highly detailed data on the loan portfolios of large U.S. banks, we document that these banks "specialize" by concentrating their lending disproportionately into one industry. This specialization improves a bank’s industry-specific knowledge and allows it to offer generous loan terms to borrowers, especially to firms with access to alternate sources of funding and during periods of greater nonbank lending. Superior industry-specific knowledge is further reflected in better loan and, ultimately, bank performance. Banks concentrate more on their primary industry in times of instability and relatively lower Tier 1 capital. Finally, specialization counteracts a well-documented trend in reduced lending by large banks to opaque small and medium-sized enterprises.
Physical Description: 1 Online-Ressource (circa 60 Seiten); Illustrationen