Checking Accounts and Bank Lending
- Checking Accounts and Bank Lending
- Han, Joong H.
- Checking accounts; bank loans
- Issue Date
- Series/Report no.
- KDI Working Paper Series;08-16
- Does deposit-taking help lending? Extant theories suggest that there are significant
advantages of offering checking accounts and lending together. Despite the synergetic
advantages between two traditional banking services, to my knowledge, no prior research
directly examines how firms choose checking account providers and how such choices affect
loan contract terms. This study attempts to fill the gap. I find that close geographical
distance and durable banking relationships mainly determine the use of checking account
services. Overall the findings of this paper suggest that the benefits of having checking
accounts with lenders arise from credit availability but not from loan pricing.
- Files in This Item:
Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.