@article{4586,
  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 bor-rowers benefit from cost-efficient banking. }},
  author       = {{Schlueter, Tobias and Busch, Ramona and Sievers, Soenke and Hartmann-Wendels, Thomas}},
  journal      = {{Credit and Capital Markets--Kredit und Kapital}},
  keywords     = {{interest rate pass-through models, error correction models, bank efficiency, cost efficiency, stochastic frontier analysis}},
  number       = {{1}},
  pages        = {{93--125}},
  title        = {{{Loan Pricing: Do Borrowers Benefit from Cost-Efficient Banking?}}},
  doi          = {{10.3790/ccm.49.1.93}},
  volume       = {{49}},
  year         = {{2016}},
}