The study on the relationship among banking relationship, lending contract and bank operational performance

This paper is to discuss the relationship between bank lending screening signal and bank operational performance. The study finds that the information asymmetry phenomenon has significant influence to the health running of financial market based on the review of relevant existing literatures; while...

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Bibliographic Details
Published in2008 International Conference on Management Science and Engineering 15th Annual Conference Proceedings pp. 1146 - 1154
Main Authors Chang Hsiu-chen, Huang Gow-liang, Yu Chang-hsi
Format Conference Proceeding
LanguageEnglish
Published IEEE 01.09.2008
Subjects
Banking
banking relationship
Conference management
Contracts
Data analysis
Educational institutions
Engineering management
Financial management
Industrial relations
information asymmetry
lending contract
Monitoring
operational performance
Technology management
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Summary:This paper is to discuss the relationship between bank lending screening signal and bank operational performance. The study finds that the information asymmetry phenomenon has significant influence to the health running of financial market based on the review of relevant existing literatures; while most studies emphasize on the discussion upon the influence of banking relationship to the operational performance of borrowing company, and there are few systematic and comprehensive studies on the interactive relationship between bank lending screening signal and bank operational performance and the information asymmetry phenomenon. In order to achieve this study objective, this paper attempts to discuss the influence of banking relationship of domestic banking industry of Taiwan, lending contract content and borrowing company profit to the operational performance of bank from the systematic viewpoint. The result of data analysis shows that the independent variable lending profit ratio of lending contract and the return on assets and earning per share of borrowing company will influence the dependent variable lending yield ratio and bankpsilas ratio of nonperforming loans to total loans of bank operational performance index significantly. The implication represented by each above-mentioned analysis result will be further discussed in this paper.
ISBN:9781424423873
1424423872
ISSN:2155-1847
DOI:10.1109/ICMSE.2008.4669055