By KC Soares, ContributorIN THE Sunday Gleaner of January 19, 2003, Mr. Valhalla decided to take me to task on my recommendation that female bank managers/loan officers should be avoided when seeking a business loan. It would appear that Mr. Valhalla did not read the entire article or just decided to quote from a small section, thus diluting the total effect of what I tried to get across. For those like Mr. Valhalla who might have just zeroed in on a small section of the article, let me give a broader picture of what my experience has taught me.
I do agree with Mr. Valhalla that the hands of the female bankers are tied by the banks and the system. But this is the case with all managers, whether male or female. The difference between the genders is that the female managers are very cautious while the male managers are more willing to take a chance. As a consequence, male managers in general tend to be more sympathetic towards the small businessman. If everything is not in order according to the guidelines set out in a manual, it is my experience that most female managers/loan officers will not approve the loan application. It is also my experience that small businesses in general never usually have everything in order. In this situation the male manager is much more helpful. I must, however, make it clear here that not all female managers will turn down a loan application that does not conform with what is desired. However, most of them will. On the other hand, not all male managers will assist someone in a similar position. A few of them will not. It is on this basis that I recommend that a small business operator meet with a male banker as opposed to a female banker. Clearly the probability of meeting with a sympathetic male banker is much greater than meeting with a sympathetic female banker.
It is not fair for Mr. Valhalla to have said in his article that I have damned all female managers. In my opening statement on the matter, I mentioned that in my time, I have met three outstanding female bankers who were better than any male bankers that I have met. Surely, there are very good female bankers around; however, they are very few in number. Let me outline how I think the system may have worked against females.
Having worked in two banks and being associated with the banking sector for almost 40 years, I have found out that they tend to invest more in males than in females. In light of this, female managers tend to think that they have a point to prove which leads to their ultra-conservativeness. My experience also shows me that the banking system is more accommodating to the mistakes (bad loans made) of male managers than to the mistakes of female managers. This tends to make female managers even more conservative and most tend to walk away rather than take a risk. In the circumstances, who would you prefer to approach for a loan - a manager who is not taking any risks or a manager who would?
Another reader criticised my article saying that I am implying that all female managers cannot read or analyse financial statements. This is certainly not so and I am somewhat bewildered by the fact that someone could have drawn that conclusion. What I will say in this regard is that a significant number of managers, both male and female are not properly trained, as clearly was the case with the female manager encountered. This has its genesis way back in the 1970s when it was commonly felt that Jamaica was heading in the direction of becoming a socialist state. Many bank managers, both locals and expatriates, from fear of living under a socialist regime, migrated. This left a vacuum in the banking system and overnight persons (both male and female) were prematurely promoted to managerial positions. Since generally, the banks were "pushing" the men more than the women, those male employees promoted under the circumstances had a distinct advantage over their female colleagues.
Many of the female managers in their new position were reluctant to ask questions for their own edification as this might have reflected poorly on them in a highly competitive environment. This, in my opinion, hampered the learning process. It is clear to me that some managers were victims of their circumstances.
There have been great strides made by women in all aspects of banking. However, it is my opinion that more training is required in areas of credit.
K. C. Soares is a former banker and is now a business consultant with Soledad Financial Services Limited. E-mail: soledad@netcomm-jm.com.
