Common Lenders and Product Market Competition

This paper explores how bank concentration affects product market competition of non-financial firms. We argue, and provide evidence, that sharing common lenders lowers the cost of debt financing. This is because common lenders internalize potential adverse effects of higher loan rates on the product market behavior of their borrowers’ competitors.

Who

Farzad Saidi (Stockholm School of Economics)

Where

IWH conference room

Personal details

Farzad Saidi is an Assistant Professor of Finance at Stockholm School of Economics. His research fields are Banking and Financial Intermediation, MonetaryPolicy and Corporate Finance.

Agenda