Biases in Lending Decisions Every Credit Manager Must Know

A credit decision is supposed to be based on facts, financials, repayment capacity, cash flows and risk assessment. But credit decisions are ultimately made by human beings — and human judgement can be influenced by different types of biases. In this video, I explain how different forms of bias can impact lending decisions and how they can potentially influence the way a banker evaluates a borrower, financial information and credit risk. In this video, I discuss: 1. What is bias in lending? 2. Why can even experienced credit managers be influenced by bias? 3. Different type of biases that impact lending decision The objective of this video is not to suggest that bankers deliberately make biased decisions. Rather, it is to understand that human judgement can introduce unconscious biases into even well-structured credit appraisal processes. For a credit manager, recognising these biases is an important step towards making more consistent, objective and risk-sensitive lending decisions. This video is useful for credit managers, bankers, risk professionals, relationship managers, CA/MBA students, finance professionals and anyone interested in practical credit analysis. #CreditAnalysis #LendingDecisions #CreditRisk #Banking #CreditManager #RiskManagement #BankingRisk #Lending #CognitiveBias #CreditAppraisal #BankingProfessionals #FinanceEducation Join this channel to get access to perks:    / @ankushjain   biases in lending decisions, lending biases, bias in credit decisions, cognitive bias in lending, credit analysis, credit risk management, credit appraisal, banking credit analysis, credit manager, lending decisions, biased lending decisions, confirmation bias in lending, anchoring bias in credit, halo effect in banking, recency bias in lending, availability bias in credit, overconfidence bias banking, credit risk assessment, banker decision making, credit manager training, banking risk management, loan appraisal, bank loan analysis, credit appraisal training, behavioural finance banking