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Articles

Necessary and Sufficient Conditions in Trust Development Over Time: Understanding the Borrower–Lender Relationship

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By Andrea Moro, Matthias Fink, Dalm Management
| Wiley Online Library Verified
Introduction The financial sector is inherently rooted in trust between interaction partners. Providers of financial resources place trust in their counterpart's ability and willingness to fulfil their obligations, that is, the repayment of funds and remuneration. Borrowers share sensitive information about their creditworthiness, such as their venture's strategy and prospective performance, based on trust in lenders’ ability and willingness to assess this information fairly.
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