Conference Agenda
Please note that all times are shown in the time zone of the conference. The current conference time is: 15th Sept 2026, 08:45:09am CEST
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Daily Overview |
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FI 08: New Perspectives in Bank Lending to Firms Location: LR M0.2 (Floor 0) Session Chair: Diana Bonfim, ECB and Católica Lisbon | |
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ID: 723
Scope for Change? Bank Scope and Small Business Lending 1: McGill University; 2: Banque de France Why do firms obtain multiple lending products from the same bank? Exploiting the 2016 acquisition of two specialized lenders by a diversified French bank, we test whether multi-product borrowing arises from operational frictions (e.g., search costs) or from informational frictions, which give banks with existing product relationships an advantage over outside lenders. We find that, after the acquisition, only firms using high-information products from the acquired lenders start borrowing from the acquiring bank. Post-merger integration or cross-selling opportunities cannot explain this asymmetry. Our results show that broader scope helps banks retain borrowers by generating information, not by offering convenience.
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