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Gender and Banking: Are Women Better Loan Officers?

49 Pages Posted: 8 Sep 2009  

Thorsten Beck

City University London - Sir John Cass Business School; Tilburg University - European Banking Center, CentER

Patrick Behr

Brazilian School of Public and Business Administration

Andre Guettler

University of Ulm - Department of Mathematics and Economics; Halle Institute for Economic Research

Multiple version iconThere are 2 versions of this paper

Date Written: August 2009

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.

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

JEL Classification: G21, J16

Suggested Citation

Beck, Thorsten and Behr, Patrick and Guettler, Andre, Gender and Banking: Are Women Better Loan Officers? (August 2009). CEPR Discussion Paper No. DP7409. Available at SSRN: https://ssrn.com/abstract=1469908

Thorsten Beck (Contact Author)

City University London - Sir John Cass Business School ( email )

106 Bunhill Row
London, EC1Y 8TZ
United Kingdom

Tilburg University - European Banking Center, CentER ( email )

PO Box 90153
Tilburg, 5000 LE
Netherlands

Patrick Behr

Brazilian School of Public and Business Administration ( email )

Praia de Botafogo 190
Rio de Janeiro, 22250-900
Brazil

Andre Guettler

University of Ulm - Department of Mathematics and Economics ( email )

Helmholzstrasse
Ulm, D-89081
Germany

Halle Institute for Economic Research ( email )

P.O. Box 11 03 61
Kleine Maerkerstrasse 8
D-06017 Halle, 06108
Germany

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