The Impacts of Banking Relationship on Bank Credit Line and Mark-Up Rate for Small Business Loans--A Case of Loan Contracts from XYZ Bank in Southern Region of Taiwan

• Main Authors: Tsung-yen Tsai, 蔡宗諺
• Other Authors: Sheng-hung Chen
• Format: Others
• Language: zh-TW
• Published: 2011
• Online Access: http://ndltd.ncl.edu.tw/handle/98701279196770274278

碩士 === 南華大學 === 財務金融學系財務管理碩士班 === 99 === 　　Using loan contrac data on 254 small businesses with final 624 sample observations from several branches of public-listed XYZ bank in southern region of Taiwan from 2005 to 2009, this thesis empirically investigates the impacts of bank relationship (years and numbers) and main bank lending on credit line and mark-up rate for small and median business entities (SME). Empirical results indicate that SMEs with larger bank relationship numbers and loger years would obtain higher credit line but bank relationship year have negative impact on mark-up rate. In addition, SMEs with main bank lending would have higher credit line and enjoy relatively less mark-up rate by bank. Specifically, financial crisis during period of 2008 to 2009 not only increased mark-up rate but also decreased credit line for SMEs. Besides, larger numbers of banking relationship would help SMEs with main bank to have more credit line but to gain relatively higher mark-up rate than those with smaller numbers of banking relationship.Furthermore, larger numbers of banking relationship would lead SMEs without main bank to increase their credit line and to have relatively lower mark-up rate.