Arbeitspapier
Cedit risk analysis of small and medium-sized enterprises based on Thai data
SMEs often have severe difficulties raising money. Considering the bank-dominated characteristic of economies in Asia, banks are the main source of financing. In order to prevent the accumulation of non-performing loans in the small and medium-sized enterprise (SME) sector, it is crucial for banks to distinguish healthy SMEs from risky ones. This chapter examines how a credit rating scheme for SMEs can be developed when access to other financial and non-financial ratios is not possible by using data on lending by banks to SMEs. We employ statistical techniques on five variables from a sample of 3,272 Thai SMEs and classify them into subgroups based on their financial health. The source of data used for the credit risk analysis in this research is the National Credit Bureau of Thailand. By employing these techniques, banks could reduce information asymmetry and consequently set interest rates and lending ceilings for SMEs. This would ease financing to healthy SMEs and reduce the number of non-performing loans to this important sector.
- Language
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Englisch
- Bibliographic citation
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Series: ADBI Working Paper Series ; No. 905
- Classification
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Wirtschaft
Banks; Depository Institutions; Micro Finance Institutions; Mortgages
Pension Funds; Non-bank Financial Institutions; Financial Instruments; Institutional Investors
Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies
Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
- Subject
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small and medium-sized enterprises
SME
credit risk analysis
NCB
- Event
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Geistige Schöpfung
- (who)
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Taghizadeh-Hesary, Farhad
Yoshino, Naoyuki
Charoensivakorn, Phadet
Niraula, Baburam
- Event
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Veröffentlichung
- (who)
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Asian Development Bank Institute (ADBI)
- (where)
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Tokyo
- (when)
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2018
- Handle
- Last update
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10.03.2025, 11:41 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Taghizadeh-Hesary, Farhad
- Yoshino, Naoyuki
- Charoensivakorn, Phadet
- Niraula, Baburam
- Asian Development Bank Institute (ADBI)
Time of origin
- 2018
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