Year: 2016
Author: Schlueter, Tobias, Busch, Ramona, Sievers, Soenke, Hartmann-Wendels, Thomas
Credit and Capital Markets – Kredit und Kapital, Vol. 49 (2016), Iss. 1 : pp. 93–125
Abstract
This study examines the loan-pricing behavior of German banks for a large variety of retail and corporate loan products. We find that a bank"s operational efficiency is priced in bank loan rates and alters interest-setting behavior. Specifically, we establish that a higher degree of operational efficiency leads to lower loan markups, which makes prices more competitive and smoothes the setting of interest rates. By employing state-of-the-art stochastic frontier efficiency measures to capture a bank"s operational efficiency, we take a look at the bank customers" perspective and demonstrate the extent to which borrowers benefit from cost-efficient banking.
Journal Article Details
Publisher Name: Global Science Press
Language: English
DOI: https://doi.org/10.3790/ccm.49.1.93
Credit and Capital Markets – Kredit und Kapital, Vol. 49 (2016), Iss. 1 : pp. 93–125
Published online: 2016-03
AMS Subject Headings: Duncker & Humblot
Copyright: COPYRIGHT: © Global Science Press
Pages: 33
Keywords: G21 G28 interest rate pass-through models error correction models bank efficiency cost efficiency stochastic frontier analysis
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| Section Title | Page | Action | Price |
|---|---|---|---|
| Tobias Schlueter et al.: Loan Pricing: Do Borrowers Benefitfrom Cost-Efficient Banking? | 1 |