A credit institution that enters into a long-lasting business relationship with a company, which – is based on an in-depth, comprehensive exchange of information and – protects the company against liquidity shortages and strong fluctuations (oscillations: vibrations above and below a mean value) in its financing costs. Empirical evidence for Germany shows that companies with a house bank relationship pay lower interest rates on loans compared with other firms. – Only in Germany, Austria and Japan is the house bank relationship currently widespread. Because of its advantages, it has attracted strong attention in other countries, especially since about 2000; and it is generally predicted to expand worldwide. – See relationship banking, relationship management, industries, location-based, clubbing, funding premium, external, asset-backed securities-collateralized debt obligation, concentration risk, credit diversification, proximity to customers, multisourcing, adverse selection. – Cf. Deutsche Bundesbank Monthly Report of June 2006, pp. 38 f. (Dangers of relationship banking), ECB Monthly Report of August 2009, p. 104 f. (House banks shield customers in times of crisis), Deutsche Bundesbank Monthly Report of January 2012, p. 22 f. (Importance of the house bank relationship for SMEs).
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University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
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