Evidence record 8088 · automatically gathered

Cultural Proximity and Loan Outcomes

We present evidence that cultural proximity (shared codes, beliefs, ethnicity) between lenders and borrowers increases the quantity of credit and reduces default. We identify in-group lending using dyadic data on religion and caste for officers and borrowers from an Indian bank, and a rotation policy that induces exogenous matching between them. Having an in-group officer increases credit access and loan size dispersion, reduces collateral requirements, and induces better repayment even after th

Record details

Published: 1 February 2017
Source: OpenAlex
Category: Research
Topics: Regulation
Retrieved: 14 July 2026

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ethics.ai (1 February 2017), “Cultural Proximity and Loan Outcomes,” evidence record 8088, https://ethics.ai/record/8088 (originally published by OpenAlex).

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