The Optimal Structure of Bank Relationship: A Survey

Which is the optimal number of bank relationship for a company? Taking just into account transaction costs the answer should be one. However, data suggest that this number changes according to the size, the period of observation, and also to the country of firms. Thus, relying on both theoretical and empirical studies, this article tries to identify the optimal structure of the bank relationship of a company and the various relevant factors at work. We highlight that if a very opaque firm should have concentrated bank relationship, this conclusion changes when factors such as the different nature of the information produced by the firm or as its environment are taken into account.