Collateral and its substitutes in emerging markets' lending

Research, Preprint English OPEN
Lukas Menkhoff; Doris Neuberger; Ornsiri Rungruxsirivorn;
(2011)
  • Publisher: Munich: Center for Economic Studies and Ifo Institute (CESifo)
  • Subject: financial institutions | lending | O16 | G21 | relationship lending | lending, financial institutions, collateral, guarantees, relationship lending | collateral | guarantees
    • jel: jel:O16 | jel:G21
      ddc: ddc:330

Due to opaque information and weak enforcement in emerging loan markets, the need for collateral is high, whereas borrowers lack adequate assets to pledge as collateral. How is this puzzle solved? We find for a representative sample from Northeast Thailand that indeed m... View more
  • References (57)
    57 references, page 1 of 6

    Allen, F., Qian, J. and M. Qian (2005), Finance, Law, and Economic Growth in China, Journal of Financial Economics, 77, 57-116.

    Avery, R.B., Bostic, R. and K. Samolyk (1998), The Role of Personal Wealth in Small Business Finance, Journal of Banking and Finance, 22, 1019-1061.

    Bae, K.-H. and V.K. Goyal (2009), Creditor Rights, Enforcement, and Bank Loans, Journal of Finance, 64, 823-860.

    Beck, T. and A. Demirgüç-Kunt (2008), Access to Finance: An Unfinished Agenda, World Bank Economic Review, 22:3, 383-396.

    Beck, T. and A. Demirgüç-Kunt (2008a), Small and Medium-size Enterprises: Access to Finance as a Growth Constraint, Journal of Banking and Finance, 30, 2931-2943.

    Behr, P., Entzian, A. and A. Güttler (2011), How Do Lending Relationships Affect Access to Credit and Loan Conditions in Microlending?, Journal of Banking and Finance, 35, 2169-2178.

    Berger, A.N., Espinosa-Vega, M.A., Frame, W.S. and N.H. Miller (2011a), Why Do Borrowers Pledge Collateral? New Empirical Evidence on the Role of Asymmetric Information, Journal of Financial Intermediation, 20, 55-70.

    Berger, A.N., Frame, W.S. and Vasso Ioannidou (2011b), Tests of ex ante versus ex post Theories of Collateral Using Private and Public Information, Journal of Financial Economics, 100, 85-97.

    Berger, A.N. and G.F. Udell (1990), Collateral, Loan Quality, and Bank Risk, Journal of Monetary Economics, 25, 21-42.

    Berger, A.N. and G.F. Udell (1995), Relationship Lending and Lines of Credit in Small Firm Finance, Journal of Business, 68, 351-381.

  • Metrics
Share - Bookmark