Managerś assessment of thin and thick trust: The importance of benevolence in interbank relations

Roy Liff and Gunnar Wahlström

Scandinavian Journal of Management, 2017, vol. 33, issue 3, 151-161

Abstract: This qualitative interview study investigates managers’ ongoing relationships in inter-organisational banks, examining how they assess trust in their counterparts and how they decide if the relationship should continue. In normal times, formal information can assess thin trust – the ability and integrity of their counterparts. In times of impending crisis, senior bank managers rely on the evaluation of thick personal trust: benevolence. To be a trustworthy party in a financial crisis, benevolence must be established between counterpart banks before the crisis. Benevolence is a redundant component of trust in normal times, but extremely important during a crisis. Lack of benevolence established in normal times may, in fact, be at least partially responsible for the fragility of interfirm agreements and alliances.

Keywords: interbank; senior bank managers; trust; formal control; benevolence (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0956522116302950
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:scaman:v:33:y:2017:i:3:p:151-161

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/872/bibliographic
http://www.elsevier. ... me/872/bibliographic

DOI: 10.1016/j.scaman.2017.04.002

Access Statistics for this article

Scandinavian Journal of Management is currently edited by Janne Tienari

More articles in Scandinavian Journal of Management from Elsevier
Bibliographic data for series maintained by Catherine Liu ().