+7 925 966 4690, 9am6pm (GMT+3), Monday – Friday
ИД «Финансы и кредит»

JOURNALS

  

FOR AUTHORS

  

SUBSCRIBE

    
Finance and Credit
 

Intensifying the interrelationships between the bank and the corporation

Vol. 29, Iss. 12, DECEMBER 2023

PDF  Article PDF Version

Received: 21 August 2023

Received in revised form: 4 September 2023

Accepted: 18 September 2023

Available online: 28 December 2023

Subject Heading: Banking

JEL Classification: G21, G32

Pages: 2767–2794

https://doi.org/10.24891/fc.29.12.2767

Vladimir D. SMIRNOV Financial University under Government of Russian Federation, Moscow, Russian Federation
vdsmirnov@fa.ru

https://orcid.org/0000-0002-1243-5349

Subject. This article examines the peculiarities of cooperation between non-financial companies and banks in present-day conditions.
Objectives. The article aims to identify areas for improving cooperation between the bank and the firm through enhancing the specialization and competencies of each party to increase their profits and value.
Methods. For the study, I used the logical and systems approaches, and analysis and synthesis.
Results. The article finds that endogenous factors of non-financial companies and banks make it necessary to identify the cooperation between corporate financial services and credit organizations. One of the areas of close cooperation is the interaction of the corporate financial service and the bank, the improvement of which provides benefits to each party from opportunities building to focus on the core activities.
Conclusions and Relevance. The complication of exogenous circumstances forces companies to strengthen their competencies and specialization, which inevitably leads to the need to improve cooperation with organizations specializing in the production of goods and services that are used in the manufacture of finished products, but do not differentiate companies from competitors in the relevant market. The results of the study can be used in the practices of corporations and banks, and when teaching the disciplines of corporate finance and banking in higher educational institutions.

Keywords: specialization, financial result, mutual benefit, enhancement in organization's value

References:

  1. Amiti M., Weinstein D.E. How Much Do Idiosyncratic Bank Shocks Affect Investment? Evidence from Matched Bank-Firm Loan Data. Journal of Political Economy, 2018, vol. 126, iss. 2, pp. 525–587. URL: Link
  2. Aoki Y. Determinants of the Intensity of Bank-Firm Relationships: Evidence from Japan. The Review of Corporate Finance Studies, 2023, cfad017. URL: Link
  3. Bransah W. The Role of the Finance Function in Organizational Processes. Dama Academic Scholarly Journal of Researchers, 2020, vol. 5, iss. 3, pp. 15–20. URL: Link
  4. Blickle K., Parlatore C., Saunders A. Specialization in Banking. Federal Reserve Bank of New York Staff Reports, 2021, no. 967, 60 p. URL: Link
  5. Degryse H., Kokas S., Minetti R., Peruzzi V. Bank Information and Firm Growth: Microeconomic Evidence from the US Credit Market. Journal of Financial Services Research, 2023, 43 p. URL: Link
  6. De Marco F., Kneer C., Wieladek T. The Real Effects of Capital Requirements and Monetary Policy: Evidence from the United Kingdom. Journal of Banking & Finance, 2021, vol. 133, 106237. URL: Link
  7. Lin H.-C., Huang J.-C., You C.-F. Bank Diversification and Financial Constraints on Firm Investment Decisions in a Bank-Based Financial System. Sustainability, 2022, vol. 14, pp. 1–19. URL: Link
  8. Malafronte I., Monferra S., Porzio C., Sampagnaro G. Competition, Specialization and Bank–Firm Interaction: What Happens in Credit Crunch Periods? Applied Financial Economics, 2014, vol. 24, iss. 8, pp. 557–571. URL: Link
  9. Neuhann D., Saidi F. The Firm-Level Real Effects of Bank-Scope Deregulation: Evidence from the Rise of Universal Banking. October 28, 2014. URL: Link
  10. Petersen M.A. Banks and the Role of Lending Relationships: Evidence from the U.S. Experience. Rassegna Economica, 1999, vol. 63, iss. 1, pp. 37–62. URL: Link
  11. Polak P., Robertson D.C., Lind M. The New Role of the Corporate Treasurer: Emerging Trends in Response to the Financial Crisis. International Research Journal of Finance and Economics, 2011, no. 78, pp. 48–69. URL: Link
  12. Shamshur A., Weill L. Bank Risk and Firm Investment: Evidence from Firm-Level Data. Journal of Financial Services Research, 2023, vol. 63, pp. 1–34. URL: Link
  13. Storz M., Koetter M., Setzer R., Westphal A. Do We Want These Two to Tango? On Zombie Firms and Stressed Banks in Europe. European Central Bank Working Paper, 2017, no. 2104, 49 p. URL: Link
  14. Smirnov V.D. [Influence of non-price factors of banks' activities on their financial results]. Finansy: teoriya i praktika = Finance: Theory and Practice, 2020, vol. 24, no. 5, pp. 62–71. URL: Link (In Russ.)
  15. Fremlin P., King J., Mathias P. Understanding Corporate Clients: Why Banks Need to Rethink Their Business Models and Approach to Client Relationship Management. Journal of Payments Strategy & Systems, 2008, vol. 2, iss. 2, pp. 119–126. URL: Link
  16. Stalk G. Jr., Evans P., Shulman L.E. Competing on Capabilities: The New Rules of Corporate Strategy. Harvard Business Review, 1992, vol. 70, iss. 2, pp. 57–69. URL: Link

View all articles of issue

 

ISSN 2311-8709 (Online)
ISSN 2071-4688 (Print)

Journal current issue

Vol. 30, Iss. 4
April 2024

Archive