IDEAS home Printed from
   My bibliography  Save this paper

Balance Sheets and Economic Recovery


  • Piti Disyatat

    (Bank of Thailand)

  • Don Nakornthab

    (Bank of Thailand)


This paper first documents the recent changing landscape of Thailand's financial sector, noting in particular the decline in bank credit intensity of production. It discusses the reasons behind the observed trend of bank disintermediation and analyzes whether these factors are likely to persist into the future. In this fact, three key issue are addressed i) the current state of bank balance sheets and the extent to which this may be holding back credit; ii) the observation of growth without credit; and iii) the impact on the monetary transmission mechanism. Moving on to a medium-term perspective, the paper discisses how financial structure (the degree to which the financial system is bank- or market-based) matters for long-run growth, highlighting, in particular, the problems that may arise from an over-reliance on bank-based intermediation. Finally, the paper analyzes the state of financial access in Thailand and its role in facilitating long-term growth. The central message is that the importance of financial access in sustaining growth, especially in the provinces, cannot be understated and significant room for improvement remains in this respect. The paper concludes by offering some policy recommendations that focus on tackling both the short- and long-term problems in Thailand's financial system.

Suggested Citation

  • Piti Disyatat & Don Nakornthab, 2003. "Balance Sheets and Economic Recovery," Working Papers 2003-02, Monetary Policy Group, Bank of Thailand.
  • Handle: RePEc:bth:wpaper:2003-02

    Download full text from publisher

    File URL:
    Download Restriction: no

    More about this item


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bth:wpaper:2003-02. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Pornpinun Chantapacdepong). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.