Details
| Original language | English |
|---|---|
| Pages (from-to) | 393-415 |
| Number of pages | 23 |
| Journal | World Economy |
| Volume | 31 |
| Issue number | 3 |
| Early online date | 21 Feb 2008 |
| Publication status | Published - Mar 2008 |
Abstract
Financial liberalisation has often failed in the past due to underestimated problems of structural change. We analyse such changes in lending behaviour of Thai commercial banks during a liberalisation phase by way of unique micro data. Liberalisation has expected positive effects, such as lowering the interest rate spread and collateral requirements. Liberalisation causes structural change, such as a decline in collateral-based and relationship banking. However, the liberal-isation evidence is consistent with more risk taking, such as lending to more risky projects and less protection against default. The Thai experience suggests obvious policy lessons.
ASJC Scopus subject areas
- Business, Management and Accounting(all)
- Accounting
- Economics, Econometrics and Finance(all)
- Finance
- Economics, Econometrics and Finance(all)
- Economics and Econometrics
- Social Sciences(all)
- Political Science and International Relations
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In: World Economy, Vol. 31, No. 3, 03.2008, p. 393-415.
Research output: Contribution to journal › Article › Research › peer review
}
TY - JOUR
T1 - Financial Liberalisation in Emerging Markets
T2 - How Does Bank Lending Change?
AU - Hübler, Olaf
AU - Menkhoff, Lukas
AU - Suwanaporn, Chodechai
PY - 2008/3
Y1 - 2008/3
N2 - Financial liberalisation has often failed in the past due to underestimated problems of structural change. We analyse such changes in lending behaviour of Thai commercial banks during a liberalisation phase by way of unique micro data. Liberalisation has expected positive effects, such as lowering the interest rate spread and collateral requirements. Liberalisation causes structural change, such as a decline in collateral-based and relationship banking. However, the liberal-isation evidence is consistent with more risk taking, such as lending to more risky projects and less protection against default. The Thai experience suggests obvious policy lessons.
AB - Financial liberalisation has often failed in the past due to underestimated problems of structural change. We analyse such changes in lending behaviour of Thai commercial banks during a liberalisation phase by way of unique micro data. Liberalisation has expected positive effects, such as lowering the interest rate spread and collateral requirements. Liberalisation causes structural change, such as a decline in collateral-based and relationship banking. However, the liberal-isation evidence is consistent with more risk taking, such as lending to more risky projects and less protection against default. The Thai experience suggests obvious policy lessons.
UR - http://www.scopus.com/inward/record.url?scp=39749091235&partnerID=8YFLogxK
U2 - 10.1111/j.1467-9701.2007.01067.x
DO - 10.1111/j.1467-9701.2007.01067.x
M3 - Article
AN - SCOPUS:39749091235
VL - 31
SP - 393
EP - 415
JO - World Economy
JF - World Economy
SN - 0378-5920
IS - 3
ER -