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The Repository of Soft Information within Bank Organizations

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  • MASAZUMI HATTORI
  • KOHEI SHINTANI
  • HIROFUMI UCHIDA

Abstract

We examine who is the repository of soft information within bank organizations. Inconsistent with the conventional view of loan officers as the sole repository, we find that branch managers have the most soft information. We also find the repository at a higher hierarchical level at smaller banks. Furthermore, our evidence suggests that branch managers themselves actively collect soft information, especially at smaller banks. These findings suggest the need for a more nuanced view beyond the conventional emphasis on loan officers, and call for studies on the equilibrium design of the collection, processing, and use of soft information within bank organizations.

Suggested Citation

  • Masazumi Hattori & Kohei Shintani & Hirofumi Uchida, 2015. "The Repository of Soft Information within Bank Organizations," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 47(4), pages 737-770, June.
    • Handle: RePEc:wly:jmoncb:v:47:y:2015:i:4:p:737-770
    DOI: 10.1111/jmcb.12226
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    6. Prateek Sharma, 2022. "Management quality, M-rating, and bank failures," SN Business & Economics, Springer, vol. 2(2), pages 1-32, February.
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    8. Michele Benvenuti & Luca Casolaro & Silvia Del Prete & Paolo Emilio Mistrulli, 2017. "The Right to Decide and the Effective Control Over Small Business Lending Decisions: A Look into Loan Officers’ Real Authority," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 46(2), pages 237-268, July.

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