We compare the write-off and loan loss provision practices of relationship versus transactional banks. Relationship banks provide both debt and equity financing to their clients, have long-lasting ties with them, serve on their boards of directors and in some cases serve as senior managers, and...

This paper tests implications of banking theory and legal theory for cross-country differences in banks' equity betas and returns. Banking theory predicts different risk exposures between transactional banks, found in the U.S., U.K., Australia and Canada, and relationship banks, found in Japan,...