The Impact of Emotional Intelligence on Loan Officers’ Intermediate Judgments

AbstractThis study follows up on by examining whether emotional intelligence (EI) has a moderating effect on loan officers' intermediate judgments. In view of findings of that EI does not affect loan officers' main judgments, these being circumscribed by the standards of their institution, we look at the potential impact of loan officers' EI on their intermediate judgments, which are not subject to such influence. In an experimental investigation, participants' judgments and decisions are examined in light of three methods of disclosing contingencies. Their intermediate judgments are considered to pertain to the borrower's overall financial condition, profitability potential, ability to pay debts and ability to sustain growth. Results show that the impact of EI as a moderating variable in the relationship between the method of disclosure and intermediate judgments, and between these judgments and the loan granting or interest rate decision, does not establish that loan officers' EI has a significant moderating effect, except between two intermediate judgments (profitability potential and ability to sustain growth) and the loan granting decision, for which results were marginally significant.