Loan Pricing: Do Borrowers Benefit from Cost-Efficient Banking?
JOURNAL ARTICLE
Cite JOURNAL ARTICLE
Style
Format
Loan Pricing: Do Borrowers Benefit from Cost-Efficient Banking?
Schlueter, Tobias | Busch, Ramona | Sievers, Soenke | Hartmann-Wendels, Thomas
Credit and Capital Markets – Kredit und Kapital, Vol. 49 (2016), Iss. 1 : pp. 93–125
4 Citations (CrossRef)
Additional Information
Article Details
Author Details
Tobias Schlueter (corresponding author), University of Cologne, Department of Banking, Albertus Magnus Platz, 50923 Cologne, Germany, e-mail: tobias., tel.: +49 171 54 90 454; fax: +49 221 470 2305.
Ramona Busch, Deutsche Bundesbank, Financial Stability Department, Wilhelm-Epstein-Straße 14, 60431 Frankfurt am Main.
Soenke Sievers, University of Paderborn, Department of International Accounting, Warburger Str. 100, 33098 Paderborn.
Thomas Hartmann-Wendels, University of Cologne, Department of Banking, Albertus Magnus Platz, 50923 Cologne, Germany.
Cited By
-
What drives the short‐term fluctuations of banks' exposure to interest rate risk?
Memmel, Christoph
Review of Financial Economics, Vol. 38 (2020), Iss. 4 P.674
https://doi.org/10.1002/rfe.1100 [Citations: 5] -
The role of local institutions in cooperative banks’ efficiency. The case of Italy
Agostino, Mariarosaria | Ruberto, Sabrina | Trivieri, FrancescoInternational Review of Economics & Finance, Vol. 84 (2023), Iss. P.84
https://doi.org/10.1016/j.iref.2022.11.001 [Citations: 4] -
Hampered Monetary Policy Transmission ‐ A Supply‐Side Story?
HECKMANN‐DRAISBACH, LOTTA | HARDT, JULIAJournal of Money, Credit and Banking, Vol. (2024), Iss.
https://doi.org/10.1111/jmcb.13216 [Citations: 0] -
Why Are Interest Rates on Bank Deposits so Low?
Busch, Ramona | Memmel, ChristophCredit and Capital Markets – Kredit und Kapital, Vol. 54 (2021), Iss. 4 P.641
https://doi.org/10.3790/ccm.54.4.641 [Citations: 8]
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.
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Tobias Schlueter et al.: Loan Pricing: Do Borrowers Benefitfrom Cost-Efficient Banking? | 1 |