The paper analyzes how bank characteristics and the overall financial environment affect the performance of banks in … India and China. Utilizing bank level data, the study examines the performance indicators of banks in India and China during …, bank profitability is usually expressed as a function of internal and external determinants. The internal determinants …

costly equity and may either decrease loans or charge higher cost on bank credit. We argue that cost efficiency can help … banks to accumulate capital through profits, while at the same time, enable them to charge lower cost on bank credit … efficiency has a positive impact on bank capital formation and a negative effect on the cost of bank credit. We further observe …

used. The study finds that many similarities and some differences between these two bank groups …