Working Paper
The importance of bank seniority for relationship lending
Abstract: The authors examine two aspects of a bank's interaction with its borrowers--the relative priority of bank debt and the role of banks as \"relationship lenders.\" They show that making the bank senior improves its incentives to build a relationship with the firm, thereby fulfilling an important function of intermediated debt.
https://doi.org/10.26509/frbc-wp-199808
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https://doi.org/10.26509/frbc-wp-199808
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Bibliographic Information
Provider: Federal Reserve Bank of Cleveland
Part of Series: Working Papers (Old Series)
Publication Date: 1998
Number: 9808