Wilson, F. (2015) Making loan decisions in banks: straight from the gut? Journal of Business Ethics, 137(1), pp. 53-63. (doi: 10.1007/s10551-014-2515-y)
|
Text
100955.pdf - Accepted Version 220kB |
Abstract
When a business owner approaches a bank for a loan for their business they might hope that a well-established bureaucratic procedure would ensure that their application was processed with stipulated rules and impersonal criteria. They might expect that two bank officials, evaluating the same proposal for a loan, would reach the same decision. However, research shows that both quantifiable data and “gut feelings” are used in the decision. In this research, analysis of interviews with senior managers, and both individual and focus group interviews with bank loan officers, reveals that there are no set criteria or stipulated rules. The interviews demonstrate how and why nonquantifiable data is used, and why different bank officials can reach different conclusions on the same loan proposal. While these bank loan officers do not appear to be discriminatory against female business owners, the lending criteria and process allows significant room for discrimination. It appears questionable whether bank lending is seen as an ethical and fair process.
| Item Type: | Articles |
|---|---|
| Status: | Published |
| Refereed: | Yes |
| Glasgow Author(s) Enlighten ID: | Wilson, Professor Fiona |
| Authors: | Wilson, F. |
| College/School: | College of Social Sciences > Adam Smith Business School > Management |
| Journal Name: | Journal of Business Ethics |
| Publisher: | Springer-Verlag |
| ISSN: | 0167-4544 |
| ISSN (Online): | 1573-0697 |
| Published Online: | 15 January 2015 |
| Copyright Holders: | Copyright © 2015 Springer Science+Business Media Dordrecht |
| First Published: | First published in Journal of Business Ethics |
| Publisher Policy: | Reproduced in accordance with the copyright policy of the publisher. |
University Staff: Request a correction | Enlighten Editors: Update this record
Funder and Project Information
Funder and Project Information