Having loan applicants pay for the expenses of bank officer travel for purposes of evaluating collateral is not a conflict of interest.

Question

Quizplus · Accepted Answer

Having loan applicants pay for the expenses of bank officer travel creates a conflict of interest because the bank officer may be more inclined to approve the loan in order to recoup their travel expenses, even if the collateral is not strong enough to warrant approval.

Having Loan Applicants Pay for the Expenses of Bank Officer