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.
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Evaluating the Importance of Relationships in Banking: Insights from Research
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September 17, 2026
1 min read
📰 Phys.org
📋 Key Takeaway
The article discusses the concept of forbearance in relationship lending within the banking sector, as researched by Stephen Karolyi from George Mason University. This principle highlights how financial institutions value their relationships with clients. Understanding these dynamics could be relevant for Iran's banking relationships, especially in the context of international sanctions.
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Translated from the original and edited for English readers. View original source →
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