Abstract
Purpose - The objective of the study is to investigate the relationship between the credit information sharing and the funding cost of banks of the top ten “AA rating” commercial banks of Pakistan as the Commercial banks also play a significant role in the economy of every country.
 Design/Methodology - In this study, panel data were analyzed from 2011 to 2017. We selected the top ten “AA rating” banks from Pakistan credit rating agency (PACRA) website, and data related to another related variables are obtained from financial statements of the respective banks. Generalized Method of Moments (GMM) statistical technique was employed to measure the relationship among related variables.
 Findings - The result of the study shows that there is a negative and significant relationship between credit information sharing, operation efficiency, and funding cost. On the other side, profitability has a positive and significant relationship with the funding cost of the bank.
 Practical Implications - To manage the funding cost policymakers must focus two key findings which are credit information sharing and operational efficiency of bank and set up a credit information sharing institutions which help to reduce information irregularity and ultimately manage the funding cost of the banks.
Highlights
In the modern world, commercial banks are the key component of the financial sector and play an important role to increase economic growth in every country
This study targets the role of credit information sharing by using the proxy of private bureau information along with some other variable, which includes bank size, capital adequacy, profitability, and operation efficiency
The results of this study explored negative relationship among credit information sharing and the funding cost, this relationship among the variable explored that sharing of information reduces the funding cost and enhance the performance and assets quality of the banks
Summary
Commercial banks are the key component of the financial sector and play an important role to increase economic growth in every country. Trade and commerce would become slow down if the banks did not actively discharge their financial activities. Banks emerge as a significant part of the modern economy. Agricultural, and commercial consultancy, loan, and facilitating the process of economic development. Tiwari et al, (2013) investigate a relation among return on equity ratio, the return on assets ratio and net interest margin and found an upward trend after the establishment of a credit bureau in 2010 to 2014, while this trend was downward during 2006 to 2009. Non-performing loans were stayed below at 5% from 2005 to 2010, for the same tenure, the net margin was more than 6%. Ndungo et al, (2017) explore the differences in measured efficiency, including differences in size, specialization, other bank characteristics detected by numerous possible sources
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