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Paper eres2009_369:
Reconsideration of the Bank Credit Assessment Decision: Theoretical and Practical Issues

id eres2009_369
authors Rad, Alexander; Wahlberg, Olof; Öhman, Peter; Häckner, Einar
year 2009
title Reconsideration of the Bank Credit Assessment Decision: Theoretical and Practical Issues
source 16th Annual European Real Estate Society Conference in Stockholm, Sweden
summary The purpose of this paper is to discuss conceptual issues related to the bank credit assessment decision in the context of current events in the financial markets. To add to the theoretical discussion, a case study of a large Swedish bank will be conducted and data will be captured and then analyzed with the repertory grid technique. Additionally, information will be collected through interviews with about 60 bank managers or bank loan officers to allow statistical analyses. Similarities and differences between groups of bank loan officers (e.g. senior experts and novices) are important to identify in the context of current events. To add validity to this study, a “co-research” approach will be used by involving the bank managers and bank loan officers in analyzing and interpreting the results. Attempts will be made to identify any differences in the decision approaches of bank managers and bank loan officers pre- and post- the current financial crisis. The credit assessment decision processes will be examined by focusing on the initial encounter between the applicant and the bank loan officer who generates the first screening of the application. Information will be gathered regarding the identity of information used by the suppliers of credit in order to evaluate loan applications for approval or rejection and how this information can be categorized to enhance comparability between application cases, borrowers and personal attributes for bank loan officers. Theoretically the research rests upon financial theory, institutional theory, structuration, sense-making, accountability and cognitive theory. The conference paper outlines the methods to be used, discusses advantages and limitations with respect to validity and reliability of the methods, and tests the repertory grid technique on one respondent in a pre-study. It is concluded that the planned approach is feasible."
series ERES:conference
content file.ppt (477,696 bytes)
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ratings Ratings: 4
session Investment and Finance
last changed 2009/09/16 16:22
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