This is a past event
The seminar will be held via MS Teams on 15th November 2023 from 1500 – 1615 (1h talk & 15mins Q&A).
Join Dr Thuy Linh Nguyen from the University of Tokyo to hear his seminar on Bank Mergers and Impacts on Heterogeneous Borrowers.
Abstract: This study analyzes the effects of Japanese bank mergers on borrowers’ financing activities and bank-firm lending relationships. The result shows that the interest rates paid by continuing SME borrowers (i.e., SMEs that continue to borrow from the merged banks) decrease, and their loan ratios increase following the mergers. However, mergers may adversely affect their financing conditions if the merger size is sufficiently large, suggesting the important role of the banks’ local market share in determining loan terms. On the other hand, the impact on the financing of publicly listed continuing borrowers is small, probably because these firms may already have been offered low interest rates before the merger. The evidence further shows that, for SMEs, zombie clients of merging banks are more likely to be terminated the lending relationships than those of non-merging banks. For listed zombie firms, the probability of relationship discontinuation is generally not higher, but these firms face more stringent borrowing conditions. The unfavorable impact on risky zombie firms could be explained by an improvement in bank health and their ability to screen borrowers."
- Speaker
- Dr Thuy Linh Nguyen
- Hosted by
- University of Aberdeen Business School
- Contact
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No booking required.