Experience of Asian Asset Management Companies (AMCs): Do they Increase Moral Hazard? - Evidence from Thailand
AbstractThis paper examines the performances of Asian asset management companies (AMCs). The analysis reveals that AMCs vary in their design and performance. Asset management companies can trigger moral hazard- inspired bank lending. Empirical examination of the Thai experience reveals that the moral hazard-inspired bank lending resulted in creating more new NPLs in the case of public asset management companies. Alternatively, the centralized Thai Asset Management Company (TAMC) decreases the new NPL ratio, suggesting that TAMC provokes no adverse moral hazard effect on financial institutions.
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Bibliographic InfoPaper provided by EconWPA in its series Finance with number 0410001.
Length: 41 pages
Date of creation: 04 Oct 2004
Date of revision:
Note: Type of Document - pdf; pages: 41
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Bank restructuring; Asset Management Company; Thailand; Moral Hazard; Asia Financial Crisis;
Find related papers by JEL classification:
- G18 - Financial Economics - - General Financial Markets - - - Government Policy and Regulation
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- G34 - Financial Economics - - Corporate Finance and Governance - - - Mergers; Acquisitions; Restructuring; Corporate Governance
This paper has been announced in the following NEP Reports:
- NEP-ACC-2004-10-18 (Accounting & Auditing)
- NEP-ALL-2004-10-18 (All new papers)
- NEP-BEC-2004-10-18 (Business Economics)
- NEP-CFN-2004-10-18 (Corporate Finance)
- NEP-IFN-2004-10-18 (International Finance)
- NEP-SEA-2004-10-18 (South East Asia)
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- Masahiro Inoguchi, 2012. "Nonperforming loans and public asset management companies in Malaysia and Thailand," Asia Pacific Economic Papers 398, Australia-Japan Research Centre, Crawford School of Public Policy, The Australian National University.
- Jan Cimburek & Miroslav Kollár & Lubos Komárek & Pavel Rezábek, 2009. "Resolving Nonperforming Assets in the Czech Republic: Theory and Practice," CESifo DICE Report, Ifo Institute for Economic Research at the University of Munich, vol. 7(3), pages 21-28, October.
- Miroslav Kollár & Luboš Komárek, 2009. "Selective Approaches and Experiences with Problematic Assets in Banking Sector," Politická ekonomie, University of Economics, Prague, vol. 2009(5), pages 601-621.
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