This article examines the bank organizational structures in Norway and the UK. We find evidence to support the hypothesis that Norwegian banks are based on a modified relationship bank model. Furthermore, we test whether there is a difference in loan loss ratio and loan recovery ratio between the relationship banks found in Norway and the transactional banks found in the UK. The results support the idea that relationship banks are more effective screeners and monitorers than transactional banks. However, UK banks report consistently higher returns on equity suggesting that this result might come at a too high cost. The work is carried out with a mixture of literature studies, interviews with senior bank officers and comparative data analysis.