Collateral and its substitutes in emerging markets' lending

Research, Preprint English OPEN
Lukas Menkhoff; Doris Neuberger; Ornsiri Rungruxsirivorn;
  • 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
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