On the rationale of bank lending in pre-crisis Thailand

Menkhoff, Lukas; Suwanaporn, Chodechai

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@article{ Menkhoff2007,
 title = {On the rationale of bank lending in pre-crisis Thailand},
 author = {Menkhoff, Lukas and Suwanaporn, Chodechai},
 journal = {Applied Economics},
 number = {9},
 pages = {1077-1089},
 volume = {39},
 year = {2007},
 doi = {https://doi.org/10.1080/00036840500447815},
 urn = {https://nbn-resolving.org/urn:nbn:de:0168-ssoar-239692},
 abstract = {Evidence from credit files is provided to examine bank lending determinants of Thai commercial banks. Their lending practice follows reasonable patterns as a standard set of variables, including indirect risk variables, explains much of the variance in interest rate spread. Reflecting institutional differences with mature markets, we find higher im-portance of relationship banking and risk control via credit availability. Information about later default reveals prudent relationship lending. However, banks could have made bet-ter use of available information about borrowers' riskiness. These findings do not sup-port a general verdict of bad banking but indicate room to improve lending decisions.},
}