What is it about?
The research revealed two major traits/characteristics, based on which credit decisions are made; (a) the nature of decision-making (Formal or Informal) and, (b) manifested logic (Rational or Irrational).
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Why is it important?
These findings provide guidance for better understanding of how and why credit decisions are made and could empower decision-makers (lenders-credit evaluating officers) and borrowers to employ appropriate techniques to make effective credit decisions.
Perspectives
Based on the above results, four types of decision-makers are identified; BOSS, ROBOT, REBEL and BUDDY. The Bosses make irrational decisions employing informal methods. The Robots make irrational decisions using formal methods. The Rebels make rational decisions but employ informal methods and The Buddies make rational decisions using formal methods.
Professor Candauda Arachchige Saliya
Sri Lanka Institute of Information Technology
Read the Original
This page is a summary of: Four Types of Credit Decision-Makers: A Sri Lankan Experience, SSRN Electronic Journal, January 2018, Elsevier,
DOI: 10.2139/ssrn.3165786.
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