EconPapers    
Economics at your fingertips  
 

How costly is social screening? Evidence from the banking industry

Simon Cornée and Ariane Szafarz

ULB Institutional Repository from ULB -- Universite Libre de Bruxelles

Abstract: Social banks screen loan applicants by using both social and financial criteria, and social screening implies an extra workload. To check the costs involved in this type of screening we use balance-sheet information on European banks, and compare the operating costs of social banks with those of other banks. Surprisingly, our first results suggest that social banks' costs are not significantly higher than those of their mainstream counterparts. Next, we uncover that the extra costs of social screening are offset by a cheaper workforce. Despite their need for specific screening, social banks are financially sustainable in a market dominated by for-profit institutions.

Date: 2018
Note: SCOPUS: ar.j
References: Add references at CitEc
Citations: Track citations by RSS feed

Published in: Economics bulletin (2018) v.38 n° 1,p.532-540

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: How Costly is Social Screening? Evidence from the Banking Industry (2018) Downloads
Working Paper: How Costly is Social Screening? Evidence from the Banking Industry (2017) 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:ulb:ulbeco:2013/270510

Ordering information: This working paper can be ordered from
http://hdl.handle.ne ... lb.ac.be:2013/270510

Access Statistics for this paper

More papers in ULB Institutional Repository from ULB -- Universite Libre de Bruxelles Contact information at EDIRC.
Bibliographic data for series maintained by Benoit Pauwels ().

 
Page updated 2019-10-12
Handle: RePEc:ulb:ulbeco:2013/270510