Relationship Banking

download Relationship Banking

of 52

  • date post

    29-Mar-2016
  • Category

    Documents

  • view

    220
  • download

    1

Embed Size (px)

description

The second edition of this year.

Transcript of Relationship Banking

  • RelationshipBanking

    15th VolumeJanuary 2013issue #2

    Column I. ArnoldProtect relationship banks from internet grasshoppers

    Interview J. ScheelbeekHead of Senior Relation-ship Banking Wholesale Clients Netherlands

    Column P. FransesDo something useful for customers

    p34p26 p37

  • Ondernemers helpen groeien

    met jouw cijfermatig inzicht?

    ACCOUNTANTS EN BELASTINGADVISEURSwww.werkenbijbakertillyberk.nl

    Financieel talent Sta jij aan het begin van een carrire als accountant of fiscalist? Dan is het goed om jezelf af te vragen waar

    jouw financieel inzicht het best tot zijn recht komt. Bij Baker Tilly Berk

    controleer je niet alleen het verleden, maar adviseer je ook over de

    toekomst van een bedrijf. Baker Tilly Berk combineert een landelijke

    aanwezigheid en een internationaal netwerk met kleinschalige kantoren

    dichtbij onze klanten. Die jij al snel persoonlijk kunt adviseren. Je werkt

    bijvoorbeeld mee aan de uitbreiding van een transportonderneming,

    de fusie van twee bedrijven of een audit in de publieke sector.

    Om ondernemers te helpen groeien zoeken we medewerkers die zelf ook

    ondernemend zijn en zich continu willen ontwikkelen. Denk jij dat de rol

    van adviseur bij jou past? Dan hebben we voor jou ook een goed advies:

    werkenbijbakertillyberk.nl.

    BERK-085-02-opmaak-210x297-v15.indd 1 17-02-11 11:31

    2012 PricewaterhouseCoopers B.V. (KvK 3412089) Alle rechten voorbehouden.

    www.werkenbijpwc.nl

    Soms ben je tevredenSoms drijf je jezelf tot het uiterste

    Kom verder op werkenbijpwc.nl

    Je hebt tijdens je studie alle mogelijke kennis opgedaan. En nu wil je aan de slag. Op een plek waar je al je ambities kwijt kunt. Waar de lat hoog ligt en waar je samenwerkt met professionals. Je start je carrire vliegend en gaat recht op je doel af. Dat is: het beste in jezelf naar boven halen.

    Neem voor meer informatie contact op met een recruiter:

    Volg werkenbijpwc op Facebook en Twitter

    088 792 87 77werkenbijpwc@nl.pwc.com www.werkenbijpwc.nl/contact

    PwC RC Standaard WO tevreden.indd 1 10/8/12 12:02 PM

  • At NIBC, entrepreneurial bankers start at the deep endAs a trainee banker at NIBC, you also have a daily job. Your assignments and responsibilities start from day one. And youll

    have the chance to specialise, in for example mergers and acquisitions. You and your fellow analysts will follow our in-

    company training programme at the Amsterdam Institute of Finance, led by professors from international business schools.

    A flying start at the bank that thinks and acts like entrepreneurs. For more information, visit www.careeratnibc.com.

    0185.10.003 NIBC_Arbeidsmarkt_Adv.indd 3 22-11-11 15:05

  • Relationship Banking

    Preface

    Dear reader,

    Here it is, the second edition of the FSR Forum. We are already halfway through the academic

    year but just started the year 2013. I would like to use this moment to wish you all the best for

    this year.

    The theme of the second edition of the FSR Forum is Relationship Banking. Relationship

    banking is about offering customers services and financial products that are more than just

    simple checking and savings accounts. Some products of relationship banking are safe deposit

    boxes, insurance, credit cards, loans and investments. So relationship banking is all about

    creating a long-term relationship with the clients. After this edition you will have a better

    understanding of this interesting topic.

    In this edition we will have three scientific articles that will contribute to the creation of a

    better understanding of relationship banking. The first article is from mister Boot. He reviews

    the role of banks as relationship lenders and the close relationships they develop with borrowers

    over time. Such proximity between the bank and the borrower has been shown to facilitate

    monitoring and screening and can overcome problems of asymmetric information which are

    explained in the article.

    The second article is written by madam Presbitero and mister Zazzarro. In this paper, they

    suggest that the non-monotonic effect of market concentration on relationship lending is not

    due to the degree of concentration per se, but to the interplay between market concentration

    and the type of competitors operating in the local credit market. More precisely, their research

    hypothesis is that what prevails between the investment and the strategic theories of

    relationship lending depends on the organizational structure of the local banking system.

    The third and last article is from mister Gopalan, mister Udell and mister Yerramilli. Given the

    documented benefits of relationship lending, it is curious why firms switch banks so often. In

    this article, they address this question using an extensive data set of 30,466 loans originated by

    850 banks to 13,788 borrowers in the United States.

    In this edition you will also find an interview with Jeroen Scheelbeek. Mister Scheelbeek is the

    Head of Senior Relationship Banking Wholesale Clients Netherlands from the Rabobank

    International. Mister Scheelbeek joined Rabobank in 1997, where he worked in various senior

    positions in the areas of structured finance, corporate finance and relationship banking.

    Furthermore, you will find two columns written by professors of the Erasmus university in this

    FSR Forum. The first column is written by professor Arnold. In his column professor Arnold

    writes about the differences between relationship banks and transaction banks and the consequence

    the credit crisis has on these banks. The second column is written by professor Franses. In his

    column he discusses that banks should do more for their customers and why this is useful.

    fsrforum volume 15 issue #2

    2 Preface

  • Also this edition we have a column of mister Groeneveld. This time he wrote about retirement.

    Mister Groeneveld explains the current pension structure and gives his opinion about this

    structure.

    The Newsupdate in the FSR Forum is as always related to the topic of the FSR Forum. In this

    edition you will find that the subject of the Newsupdate is bank lending to businesses. In the

    Newsupdate you can read all about the changes of bank lending and the bank credit each year.

    In the remainder of this FSR Forum you will find an overview of our activities that took place.

    You will find a short description of the Accountants Firms Day, Finance Day, Traders Trophy

    and International Banking Cycle. Besides the activities for our members, we also had an active

    members day. You can read all about this day for our committee members.

    This edition ends with the FSR activity agenda. Here you can find all the events that are still to

    come.

    I would also like to make you aware of the fact, although we are just six months on the go, that

    from now on we are going to look for our successors. So if you are interested or if you want to

    know more about a board year at the FSR, please do not hesitate to contact us. You can also

    come by our office to drink a coffee and ask all your questions.

    I hope you will enjoy reading this edition of the FSR Forum and I wish to see you sometime at

    one of our many activities.

    Sincerely,

    Maaike Lanphen

    Editor in Chief FSR Forum

    FSR board 2012-2013

    Preface 3

  • Table of contents

    ColofonFSR FORUM appears five times a year and is an edition of the Financial Study Association RotterdamKvK Rotterdam no: V 40346422VAT no: NL 805159125 B01ISSN no: 1389-0913

    15th volume, number 2, circulation 1900 copies

    Editor in chiefMaaike Lanphen

    Editorial department Petra van den AkkerRoija Rasuli

    Editorial advisoryDr. M.B.J. SchautenDr. W.F.C. VerschoorDrs. R. Van der Wal RA

    With the cooperation ofA.W.A. BootDrs. J.G. Groeneveld RA RVA.F. PresbiteroG. RadhakrishnanJ. ScheelbeekG.F. UdellV.YerramilliA. ZazzarroProf. Dr. I. ArnoldT. Moolenaar

    R. van OvostM. Petutschnig

    Editorial addressEditiorial office FSR Forum, Erasmus Universiteit Rotterdam Room H14-06Postbus 1738, 3000 DR RotterdamTel. 010 408 1830E-mail: forum@fsr.nu

    Relationship Banking: What Do We Know?A.W.A. BootThe proliferation of transaction-oriented banking (trading) and direct funding available in the

    financial markets has started to seriously challenge banks future as relationship bankers. This has

    raised a host of interesting theoretical and empirical questions, the exploration of which has begun

    to shape the modern literature on relationship banking that is briefly reviewed in this paper. 6

    Competition and Relationship Lending: Friend or Foes?A.F. Presbitero and A. ZazzarroIn this paper, they suggest that the non-monotonic effect of market concentration on relationship

    lending is not due to the degree of concentration per se, but to the interplay between market

    concentration and the type of competitors operating in the local credit market. More precisely,

    their research hypothesis is that what prevails between the investment and the strategic theories

    of relationship lending depends on the organizational structure of the local banking system. 14

    Why do firms switch banks?G. Radhakrishnan, G.F. Udell and V. YerramilliWhile most of the empirical literature has tried to highlight the benefits of lending relationships,

    by focusing on the determinants of lending relationships, they highlight both the benefits and

    cos