Home About Latest Browse RSS Advanced Search

Federal Reserve Bank of Chicago
Economic Perspectives
The credit risk-contingency system of an Asian development bank
Robert M. Townsend
Jacob Yaron
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.


Download Full text
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.
More from this series
JEL Classification:
Subject headings:
Keywords: Financial crises - Asia ; Financial institutions - Thailand ; Thailand
For corrections, contact Bernie Flores ()
Fed-in-Print is the central catalog of publications within the Federal Reserve System. It is managed and hosted by the Economic Research Division, Federal Reserve Bank of St. Louis.

Privacy Legal