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Gender and Credit Risk: A View From the Loan Officer’s Desk

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  • José García-Montalvo
  • Marta Reynal-Querol

Abstract

We analyze the effect of loan officers' gender on the approval of applications and their subsequent performance. Using detailed bank information on a sample of close to half a million loans, we show that the risk profile of applicants screened by male and female loan officers is very similar. However, female loan officers have around a 15% lower delinquency rate than that of male officers. We find evidence that this effect is due to women's higher compliance with centralized negative recommendations. Gender bias in terms of a mistake-punishment trade-off could explain, at least partly, this level of compliance.

Suggested Citation

  • José García-Montalvo & Marta Reynal-Querol, 2019. "Gender and Credit Risk: A View From the Loan Officer’s Desk," Working Papers 1076, Barcelona School of Economics.
    • Handle: RePEc:bge:wpaper:1076
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    More about this item

    Keywords

    credit risk; gender; delinquency; Rule Compliance;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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