EconPapers    
Economics at your fingertips  
 

Vive la Différence: Social Banks and Reciprocity in the Credit Market

Simon Cornee and Ariane Szafarz

Post-Print from HAL

Abstract: Social banks are financial intermediaries paying attention to non-economic (i.e., social, ethical, and environmental) criteria. To investigate the behavior of social banks on the credit market, this paper proposes both theory and empirics. Our theoretical model rationalizes the idea that reciprocity can generate better repayment performances. Based on a unique hand-collected dataset released by a French social bank, our empirical results are twofold. First, we show that the bank charges below-market interest rates for social projects. Second, regardless of their creditworthiness, motivated borrowers respond to advantageous credit terms by significantly lowering their probability of default. We interpret this outcome as the first evidence of reciprocity in the credit market.

Keywords: Social bank; reciprocity; social identity (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-ban and nep-mfd
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00874615
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

Published in Journal of Business Ethics, 2013, 125 (3), pp.361-380. ⟨10.1007/s10551-013-1922-9⟩

Downloads: (external link)
https://shs.hal.science/halshs-00874615/document (application/pdf)

Related works:
Journal Article: Vive la Différence: Social Banks and Reciprocity in the Credit Market (2014) Downloads
Journal Article: Vive la Différence: Social Banks and Reciprocity in the Credit Market (2014) Downloads
Working Paper: Vive la Différence: Social Banks and Reciprocity in the Credit Market (2014)
Working Paper: Vive la Différence: Social Banks and Reciprocity in the Credit Market (2014) Downloads
Working Paper: Vive la Différence: Social Banks and Reciprocity in the Credit Market (2012) Downloads
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:hal:journl:halshs-00874615

DOI: 10.1007/s10551-013-1922-9

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2025-03-31
Handle: RePEc:hal:journl:halshs-00874615