1887

OECD Economics Department Working Papers

Working papers from the Economics Department of the OECD that cover the full range of the Department’s work including the economic situation, policy analysis and projections; fiscal policy, public expenditure and taxation; and structural issues including ageing, growth and productivity, migration, environment, human capital, housing, trade and investment, labour markets, regulatory reform, competition, health, and other issues.

The views expressed in these papers are those of the author(s) and do not necessarily reflect those of the OECD or of the governments of its member countries.

English, French

Post-Crisis Changes in Banking and Corporate Landscapes

The Case of Thailand

This study investigates the relative importance of factors shaping banking and corporate landscapes in Thailand after 1997 through an empirical analysis of micro-data of Thai banks and firms. The results of the analysis of the bank data show that the deceleration of bank credit growth is mainly attributable to the fallout from the Asian crisis and postcrisis regulatory changes. While high non-performing loans (NPLs) and foreclosed assets on balance sheets hinder the resumption of lending, those banks that were well capitalised, larger or domestic could resume lending faster. The analysis also showed that big, domestic, well-capitalised banks with higher NPLs are more prone to diversify into securities investments. The analysis of the firm sample indicates that Thai firms have diversified their sources of financing over the period of 1997-2000, which is reflected in the rise of the share of debt securities and trade financing. As a conclusion from the above analyses, the ...

English

Keywords: corporate financing policy, financial markets, panel data, banking behaviour, restructuring, Asia
JEL: E44: Macroeconomics and Monetary Economics / Money and Interest Rates / Financial Markets and the Macroeconomy; G31: Financial Economics / Corporate Finance and Governance / Capital Budgeting; Fixed Investment and Inventory Studies; Capacity; O53: Economic Development, Innovation, Technological Change, and Growth / Economywide Country Studies / Economywide Country Studies: Asia including Middle East; G34: Financial Economics / Corporate Finance and Governance / Mergers; Acquisitions; Restructuring; Voting; Proxy Contests; Corporate Governance; G21: Financial Economics / Financial Institutions and Services / Banks; Depository Institutions; Micro Finance Institutions; Mortgages; C23: Mathematical and Quantitative Methods / Single Equation Models; Single Variables / Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
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