Cost-efficient banks are less exposed to problems of information asymmetry within a syndicate because of effective risk management, screening, and monitoring. Supervisory mechanisms that enhance transparency on the loan portfolios of banks participating in a loan syndicate have a positive impact on syndicate size and a negative influence on debt concentration (Godlewski 2008). Thus, cost efficiency is expected to be positively related to syndicate concentration because loan syndication involves sharing miscellaneous costs, such as administration and origination costs. Consistent with the literature, a higher ratio of cost to income indicates greater cost inefficiency among banks, which is expected to encourage the formation of larger syndicates, implying a less concentrated loan syndicate.