The role of bank relationships in the interbank market

Autores
Temizsoy, Asena; Iori, Giulia; Montes Rojas, Gabriel Victorio
Año de publicación
2015
Idioma
inglés
Tipo de recurso
artículo
Estado
versión publicada
Descripción
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.
Fil: Temizsoy, Asena. City University of London; Reino Unido
Fil: Iori, Giulia. City University of London; Reino Unido
Fil: Montes Rojas, Gabriel Victorio. City University of London; Reino Unido. Consejo Nacional de Investigaciones Científicas y Técnicas; Argentina
Materia
Interbank Market
Lending Relationship
Overnight Loans
Nivel de accesibilidad
acceso abierto
Condiciones de uso
https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
Repositorio
CONICET Digital (CONICET)
Institución
Consejo Nacional de Investigaciones Científicas y Técnicas
OAI Identificador
oai:ri.conicet.gov.ar:11336/42732
Acceder
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network_name_str CONICET Digital (CONICET)
spelling The role of bank relationships in the interbank marketTemizsoy, AsenaIori, GiuliaMontes Rojas, Gabriel VictorioInterbank MarketLending RelationshipOvernight Loanshttps://purl.org/becyt/ford/5.2https://purl.org/becyt/ford/5This 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.Fil: Temizsoy, Asena. City University of London; Reino UnidoFil: Iori, Giulia. City University of London; Reino UnidoFil: Montes Rojas, Gabriel Victorio. City University of London; Reino Unido. Consejo Nacional de Investigaciones Científicas y Técnicas; ArgentinaNorth-holland2015-10info:eu-repo/semantics/articleinfo:eu-repo/semantics/publishedVersionhttp://purl.org/coar/resource_type/c_6501info:ar-repo/semantics/articuloapplication/pdfapplication/pdfhttp://hdl.handle.net/11336/42732Temizsoy, Asena; Iori, Giulia; Montes Rojas, Gabriel Victorio; The role of bank relationships in the interbank market; North-holland; Journal Of Economic Dynamics & Control; 59; 10-2015; 118-1410165-1889CONICET DigitalCONICETenginfo:eu-repo/semantics/altIdentifier/doi/10.1016/j.jedc.2015.07.008info:eu-repo/semantics/altIdentifier/url/https://www.sciencedirect.com/science/article/pii/S0165188915001451info:eu-repo/semantics/openAccesshttps://creativecommons.org/licenses/by-nc-sa/2.5/ar/reponame:CONICET Digital (CONICET)instname:Consejo Nacional de Investigaciones Científicas y Técnicas2025-09-03T09:53:56Zoai:ri.conicet.gov.ar:11336/42732instacron:CONICETInstitucionalhttp://ri.conicet.gov.ar/Organismo científico-tecnológicoNo correspondehttp://ri.conicet.gov.ar/oai/requestdasensio@conicet.gov.ar; lcarlino@conicet.gov.arArgentinaNo correspondeNo correspondeNo correspondeopendoar:34982025-09-03 09:53:57.11CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicasfalse
dc.title.none.fl_str_mv The role of bank relationships in the interbank market
title The role of bank relationships in the interbank market
spellingShingle The role of bank relationships in the interbank market
Temizsoy, Asena
Interbank Market
Lending Relationship
Overnight Loans
title_short The role of bank relationships in the interbank market
title_full The role of bank relationships in the interbank market
title_fullStr The role of bank relationships in the interbank market
title_full_unstemmed The role of bank relationships in the interbank market
title_sort The role of bank relationships in the interbank market
dc.creator.none.fl_str_mv Temizsoy, Asena
Iori, Giulia
Montes Rojas, Gabriel Victorio
author Temizsoy, Asena
author_facet Temizsoy, Asena
Iori, Giulia
Montes Rojas, Gabriel Victorio
author_role author
author2 Iori, Giulia
Montes Rojas, Gabriel Victorio
author2_role author
author
dc.subject.none.fl_str_mv Interbank Market
Lending Relationship
Overnight Loans
topic Interbank Market
Lending Relationship
Overnight Loans
purl_subject.fl_str_mv https://purl.org/becyt/ford/5.2
https://purl.org/becyt/ford/5
dc.description.none.fl_txt_mv 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.
Fil: Temizsoy, Asena. City University of London; Reino Unido
Fil: Iori, Giulia. City University of London; Reino Unido
Fil: Montes Rojas, Gabriel Victorio. City University of London; Reino Unido. Consejo Nacional de Investigaciones Científicas y Técnicas; Argentina
description 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.
publishDate 2015
dc.date.none.fl_str_mv 2015-10
dc.type.none.fl_str_mv info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion
http://purl.org/coar/resource_type/c_6501
info:ar-repo/semantics/articulo
format article
status_str publishedVersion
dc.identifier.none.fl_str_mv http://hdl.handle.net/11336/42732
Temizsoy, Asena; Iori, Giulia; Montes Rojas, Gabriel Victorio; The role of bank relationships in the interbank market; North-holland; Journal Of Economic Dynamics & Control; 59; 10-2015; 118-141
0165-1889
CONICET Digital
CONICET
url http://hdl.handle.net/11336/42732
identifier_str_mv Temizsoy, Asena; Iori, Giulia; Montes Rojas, Gabriel Victorio; The role of bank relationships in the interbank market; North-holland; Journal Of Economic Dynamics & Control; 59; 10-2015; 118-141
0165-1889
CONICET Digital
CONICET
dc.language.none.fl_str_mv eng
language eng
dc.relation.none.fl_str_mv info:eu-repo/semantics/altIdentifier/doi/10.1016/j.jedc.2015.07.008
info:eu-repo/semantics/altIdentifier/url/https://www.sciencedirect.com/science/article/pii/S0165188915001451
dc.rights.none.fl_str_mv info:eu-repo/semantics/openAccess
https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
eu_rights_str_mv openAccess
rights_invalid_str_mv https://creativecommons.org/licenses/by-nc-sa/2.5/ar/
dc.format.none.fl_str_mv application/pdf
application/pdf
dc.publisher.none.fl_str_mv North-holland
publisher.none.fl_str_mv North-holland
dc.source.none.fl_str_mv reponame:CONICET Digital (CONICET)
instname:Consejo Nacional de Investigaciones Científicas y Técnicas
reponame_str CONICET Digital (CONICET)
collection CONICET Digital (CONICET)
instname_str Consejo Nacional de Investigaciones Científicas y Técnicas
repository.name.fl_str_mv CONICET Digital (CONICET) - Consejo Nacional de Investigaciones Científicas y Técnicas
repository.mail.fl_str_mv dasensio@conicet.gov.ar; lcarlino@conicet.gov.ar
_version_ 1842269258502897664
score 13.13397

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