Abstract

This study investigates the impact of local differences in trust on bank lending activities. Using a novel dataset of nearly 600 local Polish banks and their socioeconomic environments, we find that banks operating in regions with high-trust scores set lower loan interest rates and have lower labor-related costs compared to those operating in low-trust regions. Therefore, the empirical evidence suggests that local differences in trust influence not only bank-borrower relationships but also the human resources needed to gather and process credit information.

Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.