Benefits of Relationship Banking : Evidence from Consumer Credit Markets

  title={Benefits of Relationship Banking : Evidence from Consumer Credit Markets},
  author={Sumit Agarwala and Souphala Chomsisengphetb and Chunlin Liuc and Nicholas S. Soulelesd},
  • Sumit Agarwala, Souphala Chomsisengphetb, +1 author Nicholas S. Soulelesd
  • Published 2009
This paper empirically examines the benefits of relationship banking to banks, in the context of consumer credit markets. Using a unique panel dataset that contains comprehensive information about the relationships between a large bank and its credit card customers, we estimate the effects of relationship banking on the customers’ default, attrition, and utilization behavior. We find that relationship accounts exhibit lower probabilities of default and attrition, and have higher utilization… CONTINUE READING
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