Bank branching strategies in the 1997 Thai Financial Crisis and local access to credit
Rysman,Marc Townsend,Robert M. Walsh,Christoph
Rysman,Marc
Townsend,Robert M.
Walsh,Christoph
Abstract
The effect of financial crises on bank branch location choices provides an unexplored channel by which crises affect access to credit for many years. We estimate a dynamic structural model of oligopolistic location choice for Thai banks allowing for competitive effects between rival banks. We predict the evolution of branch locations under the counterfactual scenario of no financial crisis in 1997. We find that there would have been 7.2% more branches and 4.8% more markets with at least one branch after ten years in the absence of the crisis. Furthermore, access to loans would have increased by 7.4 percentage points.
Description
Date
2026-03
Journal Title
Journal ISSN
Volume Title
Publisher
Research Projects
Organizational Units
Journal Issue
Keywords
D43 - Oligopoly and Other Forms of Market Imperfection, G21 - Banks ; Depository Institutions ; Micro Finance Institutions ; Mortgages, L13 - Oligopoly and Other Imperfect Markets, L80 - General, SDG 8 - Decent Work and Economic Growth, SDG 10 - Reduced Inequalities, SDG 1 - No Poverty
Citation
Rysman, M, Townsend, R M & Walsh, C 2026, 'Bank branching strategies in the 1997 Thai Financial Crisis and local access to credit', Journal of the European Economic Association. https://doi.org/10.1093/jeea/jvag007
License
info:eu-repo/semantics/openAccess