ABSTRACT
The study deals with the information management of bank officers during their management of loans to small firms. The relationship between the bank officer and the manager of the small firm is characterized by information asymmetry, which leads to a risk for an incorrect allocation of loans. The empirical base of the study consists of three different parts: first 55 interviews with bank officers from the seven largest banks in Sweden, second, six risk assessment seminars with bank officers, accountants, researchers and others as participants and, finally, qualitative case studies at two branch offices. Two credit relationships between bank officers and managers of small firms were studied at each of the two branch offices during a period of one year. An integrated credit management concept is formulated in the study. The concept encompasses a dynamic approach as well as a static approach to the environment and the firm. Furthermore, it regards traditional financial models as well as interactions between the bank officer, the manager of the small firm and other important persons close to the small firm, e.g., the accountant of the firm. The concept could be used as a tool for reducing the information asymmetry and, consequently, for reducing the incorrect allocations of loans.
