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

José García-Montalvo and Marta Reynal-Querol

No 1076, Working Papers from Barcelona School of Economics

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.

Keywords: credit risk; gender; delinquency; Rule Compliance (search for similar items in EconPapers)
JEL-codes: G21 J16 (search for similar items in EconPapers)
Date: 2019-03
New Economics Papers: this item is included in nep-gen and nep-mfd
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