Regulatory Alerts2026-09-03
Added
Bank Lending in the Euro Area: The Role of Bank-Firm Switching and Market Concentration
This working paper analyzes granular AnaCredit data on over seven million new loans to non-financial corporations in the euro area between January 2021 and June 2025 to assess the impact of bank-firm switching on credit terms. The study finds that borrowers switching banks receive significantly lower interest rates, larger loan amounts, and longer maturities compared to comparable existing customers, with rate discounts positively correlated with regional loan market concentration. These benefits are temporary, as subsequent loan terms from the new bank revert toward levels set for non-switching borrowers, although the magnitude and duration of these effects vary across euro area countries.
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