Factors of Influence on Relationship Banking of Polish Firms

In the field of business research, the relationships of firms to banks are not normally in a central focus, but for the survival of enterprises this issue may be important. Especially during a crisis, when cash from banks is extremely important to realize a plan of restructuring, the relationships to banks(s) becomes a crucial factor. One factor in the field of relationships to banks is the so called relationship banking, which is a well-known practice in the bank oriented economies in Europe. Relationship banking means a long run relationship between one or a small number of banks to firms, especially in lending, so the terminus is in this field relationship lending. Banks receive intensive information about the firm over a long period of time, so that the banks are able to estimate at a high level the economic situation of the firms. On the other hand the enterprises are looking for a higher level of understanding and help in critical situations. Relationship banking leads to lower competition among the banks, so that there is a fear of firms paying too much for banking products. On the basis of a huge telephone-questionnaire in Poland concerning financial management we have tried to answer some research questions in the field of relationship banking in detail in order to bring light into this somewhat dark area of relationships between banks and firms. The main aspect of relationship banking is the duration of this relationship. Using empirical methodology, we analyse this relationship on the basis of the length of time as well as aspects such as the age of the firm, the number of bank relationships, the industry, the influence of strategies and the access to credits.