What is it about?
Lending officers in banks assess loan applications defensively in times of financial crisis. This paper concludes that such defensiveness is related to the Basel-regulations, the corporate strategy of the bank and to individual-level factors. Defensiveness may result in fewer credit losses but also in missing out on profitabile business opportunities.
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Why is it important?
Provides insights on bank lending to SMEs during financial crisis to the benefit of SME owner/managers. Provides guidance concerning lending defensiveness and its triggers to the benefit of financial executives including bank managers
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This page is a summary of: Better safe than sorry: defensive loan assessment behaviour in a changing bank environment, Qualitative Research in Accounting & Management, June 2012, Emerald,
DOI: 10.1108/11766091211240360.
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