Buba finds advantages in industry specialisation
A Bundesbank paper published on Monday shows lending specialisation in certain industry sectors can create advantages when monitoring the credit quality of borrowers.
Rolf Böve, Klaus Düllmann, and Andreas Pfingsten - the paper's authors - note that specialisation in certain industry sectors can have different effects on monitoring abilities.
They use a sample of German cooperative banks and savings banks to investigate the benefits associated with industry specialisation and sectoral credit
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