Trust and Uncertainty: A Study of Bank Lending to Private SMEs in Vietnam
This research explores the question of how - in the absence of institutions that legitimate markets, contracts, and private property, and the lack of business data - banks make loan decisions to the private sector. We conducted in-depth interviews with 23 bankers of state-owned and private banks in...
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| Veröffentlicht in: | Asia Pacific business review 2006-10, Vol.12 (4), p.547-568 |
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| container_title | Asia Pacific business review |
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| creator | NGUYEN, THANG V. T. B. LE, NGOC FREEMAN, NICK J. |
| description | This research explores the question of how - in the absence of institutions that legitimate markets, contracts, and private property, and the lack of business data - banks make loan decisions to the private sector. We conducted in-depth interviews with 23 bankers of state-owned and private banks in Vietnam. Our results suggests that in the absence of effective market institutions and business data, banks in Vietnam face considerable uncertainties (rather than risks) in lending to private businesses. Consequently, banks employ a combination of uncertainty avoidance, and reliance on trust, in lending to their private business clients. We also found a strong association between types of banks (state and privately owned) and uncertainty strategies, as well as strong relationships between types of banks and trust development mechanisms. |
| doi_str_mv | 10.1080/13602380600571260 |
| format | Article |
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B. LE, NGOC</creatorcontrib><creatorcontrib>FREEMAN, NICK J.</creatorcontrib><collection>CrossRef</collection><collection>PAIS Index</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>PAIS International</collection><collection>PAIS International (Ovid)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><collection>Risk Abstracts</collection><collection>Safety Science and Risk</collection><collection>Environmental Sciences and Pollution Management</collection><jtitle>Asia Pacific business review</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>NGUYEN, THANG V.</au><au>T. B. 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| identifier | ISSN: 1360-2381 |
| ispartof | Asia Pacific business review, 2006-10, Vol.12 (4), p.547-568 |
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| language | eng |
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| source | PAIS Index; EBSCOhost Business Source Complete |
| subjects | Access to credit bank financing Bank loans Bank operations Banking industry Banking system Borrowing Business studies Financing methods Interviews Lending Private businesses Private sector Risk aversion Small & medium sized enterprises-SME Small and medium sized enterprises Studies Trust Trusts Vietnam |
| title | Trust and Uncertainty: A Study of Bank Lending to Private SMEs in Vietnam |
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