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Banking Sector Fundamentals: Learning from the Recent Bank Lending Contraction

Author

Listed:
  • Mathinee Subhaswasdikul

    (Bank of Thailand)

  • Don Nakornthab

    (Bank of Thailand)

Abstract

The paper investigates the recent contraction of bank lending in Thailand and its implication for the economy. Analyses are conducted at both aggregate and disaggregate levels. At the aggregate level, a disequilibrium econometric estimation is employed to assess the relative extent in which supply and demand factors have contributed to the credit slowdown. At the disaggregate level, the paper uses individual bank data to analyze relationship between measures of bank condition and bank lending behavior. The paper finds that availability of loanable funds and NPL overhang, both of which played a prominent role during the early stage of the contraction period, no longer appear to be major constraining factors of loan growth.

Suggested Citation

  • Mathinee Subhaswasdikul & Don Nakornthab, 2003. "Banking Sector Fundamentals: Learning from the Recent Bank Lending Contraction," Working Papers 2003-11, Monetary Policy Group, Bank of Thailand.
    • Handle: RePEc:bth:wpaper:2003-11
    as

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    References listed on IDEAS

    as
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    Cited by:

    1. Attila Csajbok & Pervin Dadashova & Pavlo Shykin & Balazs Vonnak, 2020. "Consumer Lending in Ukraine: Estimation of the Equilibrium Level," Visnyk of the National Bank of Ukraine, National Bank of Ukraine, issue 249, pages 4-12.
    2. Gergely Kiss & Márton Nagy & Balázs Vonnák, 2006. "Credit Growth in Central and Eastern Europe: Convergence or Boom?," MNB Working Papers 2006/10, Magyar Nemzeti Bank (Central Bank of Hungary).
    3. Chansarn, Supachet, 2005. "The efficiency in Thai financial sector after the financial crisis," MPRA Paper 1776, University Library of Munich, Germany, revised Dec 2006.

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