Gender and Banking: Are Women Better Loan Officers?
Social Science Research Network
This is the accepted version of the paper. This version of the publication may differ from the final published version. Permanent repository link: http://openaccess.city.ac.uk/13643/ Link to published version: http://dx. Abstract Using a unique data set for a commercial bank in Albania, we analyze gender differences in loan officer performance. Loans screened and monitored by female loan officers have a lower likelihood to turn problematic than loans handled by male loan officers. This effect
... cers. This effect cannot be explained by borrower or loan officer selection or differences in screening, work load and experience. However, while the performance gap always exists for female borrowers, female loan officers only gain a performance advantage with male borrowers with experience and do not have an advantage with borrowers that are legal entities. We therefore interpret this as suggestive evidence for female loan officers' better capacity to build trust relationships with borrowers. JEL Classification: G21; J16 and the European Banking Symposium in Maastricht for very helpful suggestions and comments. We further thank Annekathrin Entzian for excellent research assistance.