Professor Steven Ongena, University of Zurich and the Swiss Finance Institute
We study the impact of emotions on real-world decisions made by loan officers by analysing the loan conditions of loans granted immediately after a bank branch robbery. We find significant differences in conditions of the loans granted after a robbery compared to changes in loan conditions that occur contemporaneously at unaffected branches. In general loan officers seem to adopt so-called avoidance behaviour. In accordance with the literature on post-traumatic stress their avoidance behaviour is halved within two weeks after the robbery and the effect further varies depending on the presence of a firearm during the robbery.
Steven Ongena is a Professor in Banking at the University of Zurich and the Swiss Finance Institute. He is also a research fellow of CEPR. He has published more than 45 papers in refereed academic journals, including in the American Economic Review, Econometrica, Journal of Finance, Journal of Financial Economics, Journal of International Economics, Management Science and Review of Finance, among other journals, and he has published more than 45 papers in books and other collections. He is currently an associate editor of the Journal of Finance, a co-editor of the International Review of Finance, and he serves as an associate editor for a number of other journals. In 2009 he received a Duisenberg Fellowship from the European Central Bank and in 2012, a NYU Stern-Fordham-RPI Rising Star in Finance Award.