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Relationships within banks in India: A theoretical perspective

Journal Article


Abstract


  • Using two theoretical approaches agency theory and trust theory, this paper analyzes the banking relationship between

    branch manager and loan officer of a bank branch in India. The analysis is performed across five dimensions supervisor

    subordinate relationship, delegation of authority, assumption of risk in lending, goal congruence and mutual dependence.

    This analysis provides a theoretical foundation for examining bank relationships in India. The role of culture in this relationship

    is also examined as it is an important contributing factor in business relationships in India. Since Trust theory can explain

    situations involving multifaceted relationships such as one between branch manager and loan officer using stakeholders’

    perspective, this study concludes that the trust theory is a better descriptor of the banking relationship between

    branch manager and loan officer in Indian banks.

Publication Date


  • 2011

Citation


  • Bhati, S. & De Zoysa, A. (2011). Relationships within banks in India: A theoretical perspective. Banks and Bank Systems, 6 (3), 98-105.

Scopus Eid


  • 2-s2.0-84960474396

Ro Metadata Url


  • http://ro.uow.edu.au/commpapers/2324

Number Of Pages


  • 7

Start Page


  • 98

End Page


  • 105

Volume


  • 6

Issue


  • 3

Abstract


  • Using two theoretical approaches agency theory and trust theory, this paper analyzes the banking relationship between

    branch manager and loan officer of a bank branch in India. The analysis is performed across five dimensions supervisor

    subordinate relationship, delegation of authority, assumption of risk in lending, goal congruence and mutual dependence.

    This analysis provides a theoretical foundation for examining bank relationships in India. The role of culture in this relationship

    is also examined as it is an important contributing factor in business relationships in India. Since Trust theory can explain

    situations involving multifaceted relationships such as one between branch manager and loan officer using stakeholders’

    perspective, this study concludes that the trust theory is a better descriptor of the banking relationship between

    branch manager and loan officer in Indian banks.

Publication Date


  • 2011

Citation


  • Bhati, S. & De Zoysa, A. (2011). Relationships within banks in India: A theoretical perspective. Banks and Bank Systems, 6 (3), 98-105.

Scopus Eid


  • 2-s2.0-84960474396

Ro Metadata Url


  • http://ro.uow.edu.au/commpapers/2324

Number Of Pages


  • 7

Start Page


  • 98

End Page


  • 105

Volume


  • 6

Issue


  • 3