How sentiment affects bankers’ decision making

How Mood Affects Your Bank Loan

Your local bank robber and the Super Bowl can determine how a loan officer treats you. Where are we going? To how emotional events affect financial decisions. Post Robbery Trauma. In Colombia, looking at the aftermath of 835 bank robberies between 2003 and 2011, researchers observed different behavior from loan officers. Immediately after a heist, bank employees offered longer lasting loans, slightly lower interest rates and they requested more collateral. Longer loans meant dealing with fewer people, lower interest rates require less haggling and more collateral diminishes the need for background checks. ….[READ]

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