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A theoretical analysis of bank relationship

Conference Paper


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Abstract


  • This paper analyses the banking relationship between branch manager and loan officer

    of a bank branch using two theoretical approaches - Agency Theory and Trust Theory.

    The analysis is performed across five dimensions of the business relationship between

    branch manager and loan officer – supervisor subordinate relationship, delegation of

    authority, assumption of risk in lending, goal congruence and mutual dependence. It is

    concluded that Trust theory is better descriptor of the banking relationship between

    branch manager and loan officer as compared to Agency theory because Trust theory

    can explain situations involving multifaceted relationship such as one between branch

    manager and loan officer using stakeholders perspective.

Publication Date


  • 2009

Citation


  • Bhati, S., McCrae, M. & De Zoysa, A. (2009). A theoretical analysis of bank relationship. International Asian Academy of Applied Business Conference (pp. 154-161). Makati City, The Philippines: Asian Academy of Applied Business.

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=2664&context=commpapers

Ro Metadata Url


  • http://ro.uow.edu.au/commpapers/1615

Start Page


  • 154

End Page


  • 161

Place Of Publication


  • http://www.ums.edu.my/spe/aaabconference2009/

Abstract


  • This paper analyses the banking relationship between branch manager and loan officer

    of a bank branch using two theoretical approaches - Agency Theory and Trust Theory.

    The analysis is performed across five dimensions of the business relationship between

    branch manager and loan officer – supervisor subordinate relationship, delegation of

    authority, assumption of risk in lending, goal congruence and mutual dependence. It is

    concluded that Trust theory is better descriptor of the banking relationship between

    branch manager and loan officer as compared to Agency theory because Trust theory

    can explain situations involving multifaceted relationship such as one between branch

    manager and loan officer using stakeholders perspective.

Publication Date


  • 2009

Citation


  • Bhati, S., McCrae, M. & De Zoysa, A. (2009). A theoretical analysis of bank relationship. International Asian Academy of Applied Business Conference (pp. 154-161). Makati City, The Philippines: Asian Academy of Applied Business.

Ro Full-text Url


  • http://ro.uow.edu.au/cgi/viewcontent.cgi?article=2664&context=commpapers

Ro Metadata Url


  • http://ro.uow.edu.au/commpapers/1615

Start Page


  • 154

End Page


  • 161

Place Of Publication


  • http://www.ums.edu.my/spe/aaabconference2009/