Soft Information and Default Prediction in Cooperative and Social Banks

Simon Cornee

Journal of Entrepreneurial and Organizational Diversity, 2014, vol. 3, issue 1, 89-103

Abstract: In this paper, to begin with, we define soft information as qualitative, subjective information produced by banks through the establishment of long-term lending relationships. We then highlight the importance of soft information for cooperative and social banks in the screening, pricing and monitoring of their borrowers as a result of their institutional features (governance, values, etc.) and the specificities of their clientele. We finally emphasise the value of qualitative (economic, social and/or environmental) factors stemming from the production of soft information in predicting credit default events.

Keywords: relationship lending; soft information; credit rating; cooperative and social banking (search for similar items in EconPapers)
JEL-codes: G21 L22 M21 P13 (search for similar items in EconPapers)
Date: 2014
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Related works:
Working Paper: Soft Information and Default Prediction in Cooperative and Social Banks (2014)
Working Paper: Soft Information and Default Prediction in Cooperative and Social Banks (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:trn:csnjrn:v:3:i:1:p:89-109

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