Study on Soft Information and Relationship Banking

Information is an essential factor in financial markets and financial transactions, generally divides into hard information and soft information. These information play important role in lending activities of commercial banks especially. Relationship banking is a lending technology in SMEs financing, mainly focus on the lending relationship between banks and SMEs, reflecting how banks establish long-term, sustainable relationship with SMEs to obtain soft information. As the special characteristics of soft information, literatures on soft information in banking are very few. Therefore, this paper reviews and analyzes soft information and relationship banking in related foreign financial literatures comprehensively and systematically, provides useful references to in-depth researches on soft information and relationship banking in SMEs financing.