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dc.contributor.authorMenkhoff, Lukasen_US
dc.contributor.authorNeuberger, Dorisen_US
dc.contributor.authorRungruxsirivorn, Ornsirien_US
dc.description.abstractThis paper examines the role of collateral in the rural credit market of an emerging country. Due to opaque information and weak enforcement, the need for collateral is expected to be high. However, rural households usually lack adequate assets to pledge as collateral. How is this puzzle solved? Using data from Thailand, we find that indeed most loans are provided without any tangible assets as collateral. Lenders can enforce collateral-free loans through third party guarantees and borrower-lender relationships, but also through reducing loan size, reducing duration or increasing the interest rate. We do not find a significant impact of borrowers' wealth and default risk on the use of collateral.en_US
dc.publisherVerein für Socialpolitik Frankfurt a. M.en_US
dc.relation.ispartofseriesBeiträge zur Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie - Session: Macroeconomic Problems of Asian Economies G1-V1en_US
dc.subject.keywordinformal financial institutionsen_US
dc.subject.keywordrelationship lendingen_US
dc.titleCollateral and Lending to Rural Households in Emerging Marketsen_US
dc.typeConference Paperen_US
Appears in Collections:Jahrestagung des Vereins für Socialpolitik 2010: Ökonomie der Familie

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