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Gender and Banking: Are Women Better Loan Officers?

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  • Beck, T.H.L.
  • Behr, P.
  • Guttler, A.

    (Tilburg University, Center for Economic Research)

Abstract

We analyze gender differences associated with loan officer performance. Using a unique data set for a commercial bank in Albania over the period 1996 to 2006, we find that loans screened and monitored by female loan officers show statistically and economically significant lower default rates than loans handled by male loan officers. This effect comes in addition to a lower default rate of female borrowers and cannot be explained by sample selection, overconfidence of male loan officers or experience differences between female and male loan officers. Our results seem to be driven by differences in monitoring, as loan officers of different gender do not seem to screen borrowers differently based on observable borrower characteristics. This suggests that gender indeed matters in banking.

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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2009-63.

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Date of creation: 2009
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Handle: RePEc:dgr:kubcen:200963

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Web page: http://center.uvt.nl

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Keywords: Behavioral banking; loan officers; gender; loan default; monitoring; screening;

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References

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Cited by:
  1. Silvia Del Prete & Maria Lucia Stefani, 2013. "Women on Italian bank boards: are they “gold dust”?," Questioni di Economia e Finanza (Occasional Papers) 175, Bank of Italy, Economic Research and International Relations Area.

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