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Managerś assessment of thin and thick trust: The importance of benevolence in interbank relations

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  • Liff, Roy
  • Wahlström, Gunnar

Abstract

This qualitative interview study investigates managers’ ongoing relationships in inter-organisational banks, examining how they assess trust in their counterparts and how they decide if the relationship should continue. In normal times, formal information can assess thin trust – the ability and integrity of their counterparts. In times of impending crisis, senior bank managers rely on the evaluation of thick personal trust: benevolence. To be a trustworthy party in a financial crisis, benevolence must be established between counterpart banks before the crisis. Benevolence is a redundant component of trust in normal times, but extremely important during a crisis. Lack of benevolence established in normal times may, in fact, be at least partially responsible for the fragility of interfirm agreements and alliances.

Suggested Citation

  • Liff, Roy & Wahlström, Gunnar, 2017. "Managerś assessment of thin and thick trust: The importance of benevolence in interbank relations," Scandinavian Journal of Management, Elsevier, vol. 33(3), pages 151-161.
    • Handle: RePEc:eee:scaman:v:33:y:2017:i:3:p:151-161
    DOI: 10.1016/j.scaman.2017.04.002
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