Loan Pricing: Do Borrowers Benefit from Cost-Efficient Banking?

T. Schlueter, R. Busch, S. Sievers, T. Hartmann-Wendels, Credit and Capital Markets--Kredit Und Kapital 49 (2016) 93–125.

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Journal Article | Published | English
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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.
Publishing Year
Journal Title
Credit and Capital Markets--Kredit und Kapital
Volume
49
Issue
1
Page
93-125
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Schlueter T, Busch R, Sievers S, Hartmann-Wendels T. Loan Pricing: Do Borrowers Benefit from Cost-Efficient Banking? Credit and Capital Markets--Kredit und Kapital. 2016;49(1):93-125. doi:10.3790/ccm.49.1.93
Schlueter, T., Busch, R., Sievers, S., & Hartmann-Wendels, T. (2016). Loan Pricing: Do Borrowers Benefit from Cost-Efficient Banking? Credit and Capital Markets--Kredit Und Kapital, 49(1), 93–125. https://doi.org/10.3790/ccm.49.1.93
@article{Schlueter_Busch_Sievers_Hartmann-Wendels_2016, title={Loan Pricing: Do Borrowers Benefit from Cost-Efficient Banking?}, volume={49}, DOI={10.3790/ccm.49.1.93}, number={1}, journal={Credit and Capital Markets--Kredit und Kapital}, author={Schlueter, Tobias and Busch, Ramona and Sievers, Soenke and Hartmann-Wendels, Thomas}, year={2016}, pages={93–125} }
Schlueter, Tobias, Ramona Busch, Soenke Sievers, and Thomas Hartmann-Wendels. “Loan Pricing: Do Borrowers Benefit from Cost-Efficient Banking?” Credit and Capital Markets--Kredit Und Kapital 49, no. 1 (2016): 93–125. https://doi.org/10.3790/ccm.49.1.93.
T. Schlueter, R. Busch, S. Sievers, and T. Hartmann-Wendels, “Loan Pricing: Do Borrowers Benefit from Cost-Efficient Banking?,” Credit and Capital Markets--Kredit und Kapital, vol. 49, no. 1, pp. 93–125, 2016.
Schlueter, Tobias, et al. “Loan Pricing: Do Borrowers Benefit from Cost-Efficient Banking?” Credit and Capital Markets--Kredit Und Kapital, vol. 49, no. 1, 2016, pp. 93–125, doi:10.3790/ccm.49.1.93.

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