How much do financial institutions really care about relationships?

Phys.org Thursday 17 September 2026, 18:40 UTC 1 min read

Key Points

How do you measure the value of a relationship? One way is forbearance—what the involved parties would give up to stay together. That's the principle used by Stephen Karolyi, associate professor of finance at the Costello College of Business at George Mason University, in his co-authored research on relationship lending in the banking industry.

Stephen Karolyi (PERSON) the Costello College of Business (ORG) George Mason University (ORG)

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How much do financial institutions really care about relationships?

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