Working Paper: CEPR ID: DP7409
Authors: Thorsten Beck; Patrick Behr; Andre Guttler
Abstract: We analyze gender differences associated with loan officer performance. Using a unique data set for a commercial bank in Albania over the period 1996 to 2006, we find that loans screened and monitored by female loan officers show statistically and economically significant lower default rates than loans handled by male loan officers. This effect comes in addition to a lower default rate of female borrowers and cannot be explained by sample selection, overconfidence of male loan officers or experience differences between female and male loan officers. Our results seem to be driven by differences in monitoring, as loan officers of different gender do not seem to screen borrowers differently based on observable borrower characteristics. This suggests that gender indeed matters in banking.
Keywords: Behavioral Banking; Gender; Loan Default; Loan Officers; Monitoring; Screening
JEL Codes: G21; J16
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| gender of loan officer (G51) | loan default rates (G33) |
| female loan officers (G21) | loan default rates (G33) |
| borrower characteristics (G51) | loan default rates (G33) |
| female loan officer performance (G51) | loan default rates (G33) |
| gender of loan officer (G51) | monitoring borrowers (G21) |