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 …

Using a proprietary database from a large Chinese state-owned bank, we examine whether information evolved from banking … relationships predicts commercial loan default by industrial firms. We find that the bank's relationship information is … relationship. Our findings indicate that, at least in the emerging markets, a bank's relationship information still matters for …