Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/22438
Authors: 
Menkhoff, Lukas
Suwanaporn, Chodechai
Year of Publication: 
2005
Series/Report no.: 
Diskussionspapiere des Fachbereichs Wirtschaftswissenschaften, Universität Hannover 326
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 importance of relationship banking and risk control via credit availability. Information about later default reveals prudent relationship lending. However, banks could have made better use of available information about borrowers' riskiness. These findings do not support a general verdict of bad banking but indicate room to improve lending decisions.
Subjects: 
Financial system
bank lending
relationship lending
financial crises
emerging economies
Thailand
JEL: 
G21
O16
Document Type: 
Working Paper

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