Federal Reserve Bank of Chicago
The credit risk-contingency system of an Asian development bank
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.
Cite this item
Robert M. Townsend & Jacob Yaron, "The credit risk-contingency system of an Asian development bank"
, Federal Reserve Bank of Chicago, Economic Perspectives, issue Q III, pages 31-48, 2001.
Keywords: Financial crises - Asia ; Financial institutions - Thailand ; Thailand
This item with handle RePEc:fip:fedhep:y:2001:i:qiii:p:31-48:n:v.25no.3
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