Sex and Credit: Is there a Gender Bias in Lending?

T.H.L. Beck, P. Behr, A. Madestam

Research output: Working paperDiscussion paperOther research output

436 Downloads (Pure)


Abstract: We exploit the quasi-random assignment of borrowers to loan officers using data from a large Albanian lender to show that own-gender preferences affect both credit supply and demand. Borrowers matched to officers of the opposite gender are less likely to return for a second loan. The effect is larger when officers have little prior exposure to borrowers of the other gender and when they have more discretion to act on their gender beliefs, as proxied by financial market competition and branch size. We examine one channel of influence, loan conditionality. Borrowers assigned to opposite-sex officers pay higher interest rates and receive lower loan amounts, but do not experience higher arrears. Together our results imply that own-gender preferences in the credit market can have substantial welfare effects.
Original languageEnglish
Place of PublicationTilburg
Number of pages50
Publication statusPublished - 2012

Publication series

NameCentER Discussion Paper


  • Group identity
  • gender
  • credit supply
  • credit demand
  • loan officers


Dive into the research topics of 'Sex and Credit: Is there a Gender Bias in Lending?'. Together they form a unique fingerprint.

Cite this