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Traditionally – lending decisions at financial institutions
12â2.Traditionally, lending decisions at financial institutions were made by people relatively high up in the organization. For instance, a senior loan officer might have to approve even a small loan. Recently, some financial institutions have decentralized this decision, some- times to people without college degrees. Discuss why it might have historically made sense to centralize the lending decision. Discuss potential factors that might have motivated the decentralization of these rights in certain organizations.
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