SRS2023 Research Seminar No.1: “Trust and bank lending technology”

07 Apr, 2023

On March 24, 2023, School of Banking, University of Economics Ho Chi Minh City held a research seminar with the topic "Trust and bank lending technology". This is the first Research Seminar hold by the School of Banking in Research Seminar Series 2023 (SOB's Research Seminar - SRS 2023) to create a forum for exchanging and learning experiences in scientific research and international publication.

The speaker is Professor Jean-Christophe Statnik at IAE University of Lille, Director of the Master Program in Financial Management. Professor Statnik’sresearch interest focus in disproportionate trust in the relationship between the bank and the company and publication on prestigious journals such as Journal of Banking and Finance, Empirical Economics,Journal of European Financial Management và Finance, and so on.

At the seminar, Professor Jean-Christophe Statnik presented research works of his team, including Professor Lobez Frédéric and PhD student Ly Hoang Vu, on the relationship between trust and lending institution structure of the bank (the organizational structure of bank credit). Based on data from LITS II, BEPS II and Bankscope 2010, the research has found evidence that if banks operate in regions with a high degree of trust, they tend to operate a centralized lending model (hierarchy structure). Hence, lending decisions are concentrated mainly at the centralized loan committee and based on hard information (information from audited financial statements, credit history, ...). Conversely, if trust is less consolidated, banks will tend to choose a more decentralized lending model (decentralized organization). Then, the basis for the lending decision-making process is mainly based on the soft information that the bank has obtained in the process of contacting and transacting with customers. This result is robust. with different measures for trust and after query endogeneity processing.

One of the highlights of the seminar was the lively exchange between the speakers and the participants. Questions are asked around research motivation, structural organisation of banks, approach method of the research paper, the exchange took place in combination between the audience in the room and the online audience (hybrid). The sincere and enthusiastic answers of the speaker fulfilled the first research seminar in the SRS2023 series of the School of Banking - University of Economics Ho Chi Minh City.

Some pictures at the SRS2023 Research Seminar No.1