LOAN PUSHING AND TRIADIC RELATIONS

Ashwini Deshpande

No 49, Working papers from Centre for Development Economics, Delhi School of Economics

Abstract: This paper is an attempt to define and explore the phenomenon of loan pushing in international lending in the Seventies. The earliest descriptions of loan pushing are anecdotal; this paper surveys the various facets that emerge through this and suggests a possible definition that serves as the basis for the theoretical model in the next section. This model, inspired by the confessions of a banker, explores a triadic relationship between a corporation in the lender country, the lender bank and a borrower in a developing country and suggests that a rational, profit maximising commercial bank could end up "pushing" loans on to the borrower. The changes in international commercial banking in the Seventies that facilitated this kind of loan pushing are discussed next. To the extent that the loan pushing doctrine is valid, it implies that the commercial banks are at least as responsible for the massive lending boom of the Seventies as the borrowers and thus ought to be made to bear the cost of adjustment as well.

Pages: 23 pages
Date: 1997-09
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.cdedse.org/pdf/work49.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cde:cdewps:49

Ordering information: This working paper can be ordered from
http://www.cdedse.org/

The price is free.

Access Statistics for this paper

More papers in Working papers from Centre for Development Economics, Delhi School of Economics Delhi 110 007. Contact information at EDIRC.
Bibliographic data for series maintained by Sanjeev Sharma ().