- Path:
-
Behavioural Determinants of Credit Appraisal: An Integrated Analysis of Risk Attitude, Experience, and Loan Officers’ Attributes in Indian Banks
Files
External resources
Periodical
- Title:
- Accounting, Economics, and Law
- Publication:
-
Berlin Boston, Mass.: De Gruyter
- Note:
- Fortsetzung der Druck-Ausgabe
- Volltext auch als Teil einer Datenbank verfügbar
- Gesehen am 10.01.15
- C!URL-Ä(06-02-12)355+34!z LF gelöscht(10-01-15)
- Scope:
- Online-Ressource
- ISSN:
- 2152-2820
- ZDB-ID:
-
2629308-0
- Keywords:
- Zeitschrift
- Classification:
- Wirtschaft
- Sozialwissenschaften
- Collection:
- Wirtschaft
- Sozialwissenschaften
- Copyright:
- Rights reserved
- Accessibility:
- Eingeschränkter Zugang mit Nutzungsbeschränkungen
- Title:
- Accounting, Economics, and Law
- Publication:
-
Berlin Boston, Mass.: De Gruyter
- Note:
- Fortsetzung der Druck-Ausgabe
- Volltext auch als Teil einer Datenbank verfügbar
- Gesehen am 10.01.15
- C!URL-Ä(06-02-12)355+34!z LF gelöscht(10-01-15)
- Scope:
- Online-Ressource
- ISSN:
- 2152-2820
- ZDB-ID:
-
2629308-0
- Keywords:
- Zeitschrift
- Classification:
- Wirtschaft
- Sozialwissenschaften
- Collection:
- Wirtschaft
- Sozialwissenschaften
- Copyright:
- Rights reserved
- Accessibility:
- Eingeschränkter Zugang mit Nutzungsbeschränkungen
Article
- Title:
- Behavioural Determinants of Credit Appraisal: An Integrated Analysis of Risk Attitude, Experience, and Loan Officers’ Attributes in Indian Banks
- Publication:
-
Berlin Boston, Mass.: De Gruyter, 2025
- Language:
- English
- Information:
- Abstract: Credit risk assessment forms the cornerstone of banking stability, yet lending decisions continue to vary substantially across institutions, reflecting heterogeneity in appraisal mechanisms and the subjective influence of lending officers. While prior studies extensively document global practices in credit evaluation and risk management, relatively little is known about how loan officers exercise judgment and decision-making during the lending process. This study addresses this gap by analysing behavioural factors that shape credit risk assessment in Indian banks. The investigation proceeds across three dimensions: the relationship between risk attitude and information acquisition, the role of professional experience in lending behaviour, and the desirable personal attributes of loan officers. Data were collected through questionnaires administered to 275 executives, fictitious case analyses, and unstructured interviews with senior loan officers. The empirical analysis employed the Kruskal–Wallis test, correlation and Cramer’s V, factor analysis, and the Fuzzy Analytic Hierarchy Process (FAHP). Findings reveal that risk attitude does not significantly influence information acquisition, whereas experience exerts a strong effect on lending behaviour. Junior and senior loan officers demonstrate more cautious and structured approaches than outsourced loan officers, with senior loan officers exhibiting a stronger rejection bias in loan approval decisions. In addition, twenty-seven desirable loan officer attributes were identified, which were subsequently prioritised using FAHP and synthesised into three broad dimensions – capability, basic abilities, and interpersonal abilities. These results indicate that senior loan officers provide higher but less dispersed evaluations of attributes, underscoring the importance of domain expertise and interpersonal effectiveness. Although the study does not employ psychometric validation for personal attributes, it contributes practical insights for recruitment and training processes by highlighting the qualities that enhance credit appraisal reliability. The research also advances interdisciplinary understanding by integrating behavioural finance and decision-making perspectives to explain the cognitive and psychological foundations of lending behaviour.
- Scope:
- Online-Ressource
- Note:
- Open Access
- Archivierung/Langzeitarchivierung gewährleistet
- Keywords:
- credit risk assessment ; lending behaviour ; individual attributes ; Fuzzy AHP ; Kruskal Wallis ; algorithmic decision making ; D12 ; D53
- Classification:
- Wirtschaft
- Sozialwissenschaften
- Sonstiges
- Collection:
- Wirtschaft
- Sozialwissenschaften
- Sonstiges
- Copyright:
- Rights reserved
- Accessibility:
- Free Access
- Title:
- Behavioural Determinants of Credit Appraisal: An Integrated Analysis of Risk Attitude, Experience, and Loan Officers’ Attributes in Indian Banks
- Publication:
-
Berlin Boston, Mass.: De Gruyter, 2025
- Language:
- English
- Information:
- Abstract: Credit risk assessment forms the cornerstone of banking stability, yet lending decisions continue to vary substantially across institutions, reflecting heterogeneity in appraisal mechanisms and the subjective influence of lending officers. While prior studies extensively document global practices in credit evaluation and risk management, relatively little is known about how loan officers exercise judgment and decision-making during the lending process. This study addresses this gap by analysing behavioural factors that shape credit risk assessment in Indian banks. The investigation proceeds across three dimensions: the relationship between risk attitude and information acquisition, the role of professional experience in lending behaviour, and the desirable personal attributes of loan officers. Data were collected through questionnaires administered to 275 executives, fictitious case analyses, and unstructured interviews with senior loan officers. The empirical analysis employed the Kruskal–Wallis test, correlation and Cramer’s V, factor analysis, and the Fuzzy Analytic Hierarchy Process (FAHP). Findings reveal that risk attitude does not significantly influence information acquisition, whereas experience exerts a strong effect on lending behaviour. Junior and senior loan officers demonstrate more cautious and structured approaches than outsourced loan officers, with senior loan officers exhibiting a stronger rejection bias in loan approval decisions. In addition, twenty-seven desirable loan officer attributes were identified, which were subsequently prioritised using FAHP and synthesised into three broad dimensions – capability, basic abilities, and interpersonal abilities. These results indicate that senior loan officers provide higher but less dispersed evaluations of attributes, underscoring the importance of domain expertise and interpersonal effectiveness. Although the study does not employ psychometric validation for personal attributes, it contributes practical insights for recruitment and training processes by highlighting the qualities that enhance credit appraisal reliability. The research also advances interdisciplinary understanding by integrating behavioural finance and decision-making perspectives to explain the cognitive and psychological foundations of lending behaviour.
- Scope:
- Online-Ressource
- Note:
- Open Access
- Archivierung/Langzeitarchivierung gewährleistet
- Keywords:
- credit risk assessment ; lending behaviour ; individual attributes ; Fuzzy AHP ; Kruskal Wallis ; algorithmic decision making ; D12 ; D53
- Classification:
- Wirtschaft
- Sozialwissenschaften
- Sonstiges
- Collection:
- Wirtschaft
- Sozialwissenschaften
- Sonstiges
- Copyright:
- Rights reserved
- Accessibility:
- Free Access
