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Thailand's Household Debt through the Lens of Credit Bureau Data: Debt and Delinquency

Author

Listed:
  • Sommarat Chantarat

    (Bank of Thailand)

  • Atchana Lamsam

    (Bank of Thailand)

  • Krislert Samphantharak

    (University of California, San Diego)

  • Bhumjai Tangsawasdirat

    (Bank of Thailand)

Abstract

This paper uses loan-level data from the National Credit Bureau to study household debt in Thailand. The wide coverage and the granularity of the data allow us to analyze prevalence, intensity, and distribution of debt and delinquency by loan product, lender, and borrower. We show that there are tremendous heterogeneities in debt and delinquency across these attributes. Overall, credit access in Thailand appears moderate and limited for housing loans. Thais begin to have debt earlier in their lives and hold debt until very old. Household debt is largely concentrated and plagued with high debt intensity and delinquency prevalence, especially among the young working age population, implying a potential increase in the vulnerability of the financial system and prolonged sluggish domestic spending. Our findings have important implications for policy design and targeting.

Suggested Citation

  • Sommarat Chantarat & Atchana Lamsam & Krislert Samphantharak & Bhumjai Tangsawasdirat, 2017. "Thailand's Household Debt through the Lens of Credit Bureau Data: Debt and Delinquency," PIER Discussion Papers 61, Puey Ungphakorn Institute for Economic Research, revised Jul 2017.
  • Handle: RePEc:pui:dpaper:61
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    References listed on IDEAS

    as
    1. Atif Mian & Amir Sufi, 2009. "The Consequences of Mortgage Credit Expansion: Evidence from the U.S. Mortgage Default Crisis," The Quarterly Journal of Economics, Oxford University Press, vol. 124(4), pages 1449-1496.
    2. Joseph P. Kaboski & Robert M. Townsend, 2012. "The Impact of Credit on Village Economies," American Economic Journal: Applied Economics, American Economic Association, vol. 4(2), pages 98-133, April.
    3. Scott L. Fulford & Scott Schuh, 2015. "Consumer revolving credit and debt over the life cycle and business cycle," Working Papers 15-17, Federal Reserve Bank of Boston.
    4. Athiphat Muthitacharoen & Krislert Samphantharak & Sommarat Chantarat, 2017. "Fiscal Stimulus and Household Debt: Evidence from Thailand's First-Car Buyer Tax Rebate," PIER Discussion Papers 60, Puey Ungphakorn Institute for Economic Research, revised Jun 2017.
    5. Alexander Karaivanov & Robert M. Townsend, 2014. "Dynamic Financial Constraints: Distinguishing Mechanism Design From Exogenously Incomplete Regimes," Econometrica, Econometric Society, vol. 82(3), pages 887-959, May.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Athiphat Muthitacharoen & Krislert Samphantharak & Sommarat Chantarat, 2019. "Fiscal stimulus and debt burden: evidence from Thailand’s first-car-buyer tax rebate program," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 26(6), pages 1383-1415, December.
    2. Sommarat Chantarat & Atchana Lamsam & Krislert Samphantharak & Bhumjai Tangsawasdirat, 2020. "Household Debt and Delinquency over the Life Cycle," Asian Development Review, MIT Press, vol. 37(1), pages 61-92, March.
    3. Kanis Saengchote & Krislert Samphantharak, 2020. "Delinquency Priority in Consumer Credit: Evidence from Thai Microdata," PIER Discussion Papers 135, Puey Ungphakorn Institute for Economic Research, revised May 2020.

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    More about this item

    Keywords

    Household Debt; Financial Access; Financial Stability; Credit Bureau Data;
    All these keywords.

    JEL classification:

    • D14 - Microeconomics - - Household Behavior - - - Household Saving; Personal Finance
    • D30 - Microeconomics - - Distribution - - - General
    • G20 - Financial Economics - - Financial Institutions and Services - - - General
    • H31 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Household
    • J26 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Retirement; Retirement Policies
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance

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