The unique feature of the rural credit market in China is the dominance of zero collateral and zero-interest reciprocal … constraint and prevalence of reciprocal loans in rural China. Based on the identification of rural households' credit constraint … lending and its long-term coexistence with the formal loan. This paper investigates the association between formal credit …

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 …. Analyzing a panel dataset of 224 banks from China and India over the period 2007-2015, we find robust evidence that cost …