Better safe than sorry: Defensive loan assessment behaviour in a changing bank environment
2011 (English)In: 6th Conference on Performance Measurement and Management Control: Advancing Global Practice, EIASM : The European Institute for Advanced Studies in Management , 2011Conference paper (Refereed)
Lending officers (LOs) assess loan applications under conditions characterized by shifts ineconomic climate, wavering public credibility for banks and greater industry regulation. Thispaper examines the extent to which, in such an economic environment, the LOs’ assessmentof commercial loan applications may be defensive, and, if so, which mechanisms that maytrigger defensive loan assessment behaviour among LOs. Using data from interviews with 76LOs in one major Swedish commercial bank and a focus group session, our findings suggestthat in the economic environment studied, LOs tend to show a defensive approach to loanassessment with the intent to avoid risk and blame. This behaviour assumes different forms,including; avoiding change, playing safe, over-conforming, depersonalizing and usinginformation symbolically. Triggering mechanisms reside on environmental, bank- andindividual levels of analysis. Overall, this study contributes to the literature by demonstratingtriggering mechanisms, intentions among LOs and forms of defensive loan assessmentbehaviour.
Place, publisher, year, edition, pages
EIASM : The European Institute for Advanced Studies in Management , 2011.
Business / Economics - Business studies
Ekonomi - Företagsekonomi
Research subject Accounting and Control
IdentifiersURN: urn:nbn:se:ltu:diva-30399Local ID: 42f380d9-4065-4ff6-8ae5-dda8ae9b10c5OAI: oai:DiVA.org:ltu-30399DiVA: diva2:1003626
Conference on Performance Measurement and Management Control : 07/09/2011 - 09/09/2011
Godkänd; 2011; 20110331 (anders_n)2016-09-302016-09-30Bibliographically approved