The purpose of this study is to investigate the impact of different scenario of self-interest on small and medium-sized enterprises (SMEs) loan officer’s behavior and intention. The study is based on three of the Five P’s of Credit Analysis—people, payment, and perspective—those are frequently adopted in practical applications, along with some moderating variables such as self-interest motivation and psychology factors. This study applied questionnaire survey in a large sized bank of Taiwan to collect data, test hypotheses and sample on loan officers. The study used Multivariate Analysis of Variance to test hypothesis, and observe the occurrence of social desirability bias.
The study found that the loan officers intend to have low recommendation to those borrowers with bad credit records(people), higher risk credit rating(payment), or reduced revenue perspective(perspective), while making high recommendation to those borrowers with good credit records, lower risk credit rating, or increased revenue perspective, In addition, loan officers’ self-interest motivation would increase the loan to the borrowers. Furthermore, social expectation bias occurs if there is significant difference between self-peers cognitions.
Under intensive competition environment among the banks in Taiwan, the study results could serve as a reference for professional ability evaluation, education, training, and effective communication enhancement on the loan officers so that they can explore the competitive advantages; hence, a win-win situation can be achieved among the bank, the bank employee, and the borrowers.