Does Trust Matters in Lending Decision? A Systematic Literature Review and Research Agendas for Future Studies

Author:

Nofandrilla Nieldya1,Wijaya Ibrahim Fatwa2,Setiaji Bambang1

Affiliation:

1. Universitas Muhammadiyah Surakarta

2. Sebelas Maret University

Abstract

Abstract

The carte di commenda and the business activities in the Islamic world demonstrate the reliance of the Middle Ages financing system on trust. Trust has been thoroughly analysed thus far in the context of the interaction between buyers and sellers, as well as in alliances. However, there is still a lack of study undertaken on the relationship between trust and loan (in Islamic term is financing) decision-making. The first objective of this Systematic Literature Review (SLR) is to analyse previous research on the relationship between trust and lending decisions, specifically focusing on bank lending to small and medium-sized enterprises (SMEs). The second aim of this SLR is to establish research agendas for future studies. SLR is selected in order to achieve a comprehensive understanding of the matter at hand. This synthesis focusses around three main themes: the building of trust, the concept of trust, and the impact of trust on lending outcomes. There are significant opportunities for more study in the areas of trust, bank lending, and SMEs. We offer a suggestion of future research for enhancing our understanding of trust and lending decision.

Publisher

Springer Science and Business Media LLC

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