The credit risk-contingency system of an Asian development bank
Abstract: This article offers a new method for the evaluation of financial institutions, one that combines socioeconomic survey data with appropriate accounting standards. A government-operated development bank in Thailand is found to be offering a risk-contingency or insurance system while being regulated as a more standard, loan-generating bank. Farmer clients experiencing adverse shocks receive indemnities that improve their well-being. With proper provisioning and accounts, that welfare gain could be weighed against premia or government subsidies.
File(s): File format is application/pdf http://www.chicagofed.org/digital_assets/publications/economic_perspectives/2001/3qepart3.pdf
Provider: Federal Reserve Bank of Chicago
Part of Series: Economic Perspectives
Publication Date: 2001
Issue: Q III