Journal Article

For better and for worse: three lending relationships


Abstract: Are close, long-term relationships between borrowers and lenders feasible in an increasingly competitive financial marketplace? How do relationships that have developed between banks and firms change when firms gain access to alternative funding sources, especially public securities markets? Can firms gain the best of both worlds by a judicious mixture of bank and public borrowing? Using three firms as examples, Mitchell Berlin sizes up the pros and cons of relationship lending.

Keywords: Bank loans;

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Bibliographic Information

Provider: Federal Reserve Bank of Philadelphia

Part of Series: Business Review

Publication Date: 1996

Issue: Nov

Pages: 3-12