Publication overview

What determines banks’ customer choice? Evidence from transition countries

Abstract

This paper explores how bank characteristics and the institutional environment influence the composition of banks’ loan portfolios. Based on the EBRD Banking Environment and Performance Survey (BEPS), we show that bank characteristics such as ownership and size are important determinants of bank customer focus. For example, we find that foreign banks are relatively strongly involved in mortgage lending and lending to subsidiaries of foreign companies, and that small banks lend relatively more to SMEs than large banks do.

Related information

Banking Environment and Performance Survey (BEPS)