| Item Type |
Journal paper
|
| Abstract |
We examine to what extent mortgage lending is characterized by strong relationships between banks and their borrowers. Our analysis is based on detailed survey data covering all current bank relations for a sample of 1,481 Swiss households out of which 687 have a mortgage. We document that mortgage borrowers maintain significantly more bank relations than comparable households without a mortgage. However, this does not imply that mortgage relations are loose. Comparing mortgage relations to other bank relations of the same households we find that mortgage relations are used for a broader scope of transactions and are held with banks that are located closer to the household. Examining the heterogeneity of mortgage relations across households, we find that financially sophisticated households are less likely to hold their mortgage with a local bank. |
| Authors |
Brown, Martin & Hoffmann, Matthias |
| Journal or Publication Title |
Schweizerische Zeitschrift für Volkswirtschaft und Statistik |
| Language |
English |
| Keywords |
Mortgage loans, Household finance, Relationship banking. |
| Subjects |
economics |
| HSG Classification |
contribution to scientific community |
| Refereed |
Yes |
| Date |
2016 |
| Publisher |
Lang |
| Place of Publication |
Bern |
| Series Name |
School of Finance Working Paper Series |
| Volume |
152 |
| Number |
1 |
| Page Range |
23-48 |
| ISSN |
0303-9692 |
| Official URL |
http://EconPapers.repec.org/RePEc:ses:arsjes:2016-... |
| Depositing User |
Prof. Dr. Martin Brown
|
| Date Deposited |
19 Aug 2013 14:01 |
| Last Modified |
20 Jul 2022 17:17 |
| URI: |
https://www.alexandria.unisg.ch/publications/225034 |
Relationship Banking in the Residential Mortgage Market? Evidence from Switzerland
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