Publication:
Does IDA Engage in Defensive Lending?

dc.contributor.authorGeginat, Carolin
dc.contributor.authorKraay, Aart
dc.date.accessioned2012-06-06T17:47:42Z
dc.date.available2012-06-06T17:47:42Z
dc.date.issued2007-08
dc.description.abstractMultilateral development banks are frequently accused of "defensive lending," the practice of extending new loans purely in order to ensure that existing loans are repaid. This paper empirically examine this hypothesis using data on lending by and repayments to the International Development Association (IDA), which is the largest provider of concessional development loans to low-income countries. The authors argue that key institutional features of IDA both (i) potentially create incentives for defensive lending, and (ii) enable particularly sharp tests of the defensive lending hypothesis. The authors find that there is a surprisingly robust partial correlation between disbursements on new IDA loans and repayments on existing loans. However, a closer look at the evidence suggests that defensive lending is unlikely to be a major explanation for this partial correlation.en
dc.identifierhttp://documents.worldbank.org/curated/en/2007/08/8178721/ida-engage-defensive-lending
dc.identifier.urihttps://hdl.handle.net/10986/7279
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper; No. 4328
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectACCOUNTING
dc.subjectADMINISTRATIVE EXPENSES
dc.subjectAMOUNT OF DEBT
dc.subjectARREARS
dc.subjectBAILOUTS
dc.subjectBALANCE SHEET
dc.subjectBALANCE SHEETS
dc.subjectBANK LENDING
dc.subjectBANK POLICY
dc.subjectBENCHMARK
dc.subjectBIASES
dc.subjectBORROWER
dc.subjectBORROWING
dc.subjectCAPITAL ADEQUACY
dc.subjectCAPITAL ADEQUACY REQUIREMENTS
dc.subjectCASH FLOWS
dc.subjectCOMMERCIAL LENDERS
dc.subjectCOMMERCIAL LENDING
dc.subjectCREDITORS
dc.subjectCREDITS
dc.subjectCREDITWORTHINESS
dc.subjectCREDITWORTHY BORROWER
dc.subjectCREDITWORTHY BORROWERS
dc.subjectDEBT
dc.subjectDEBT BURDEN
dc.subjectDEBT BURDENS
dc.subjectDEBT ISSUES
dc.subjectDEBT OUTSTANDING
dc.subjectDEBT RELIEF
dc.subjectDEBT SERVICE
dc.subjectDEBT SERVICE OBLIGATIONS
dc.subjectDEBT SERVICE PAYMENTS
dc.subjectDEBT SERVICING
dc.subjectDEBT STOCKS
dc.subjectDEBT-SERVICE
dc.subjectDEBTOR
dc.subjectDEBTOR COUNTRY
dc.subjectDEBTORS
dc.subjectDEBTS
dc.subjectDEPENDENT
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPMENT BANKS
dc.subjectDEVELOPMENT FINANCE
dc.subjectDISBURSEMENT
dc.subjectDISBURSEMENTS
dc.subjectDUMMY VARIABLE
dc.subjectDUMMY VARIABLES
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC POLICY
dc.subjectECONOMIC SYSTEM
dc.subjectECONOMIC SYSTEMS
dc.subjectEFFECT OF DEBT
dc.subjectELASTICITY
dc.subjectEXCHANGE RATES
dc.subjectEXTERNAL DEBT
dc.subjectFINANCIAL COSTS
dc.subjectFINANCIAL STATEMENTS
dc.subjectFINANCIAL SYSTEM
dc.subjectFUTURE DEBT
dc.subjectGDP
dc.subjectGDP PER CAPITA
dc.subjectGNP
dc.subjectGRACE PERIOD
dc.subjectGRACE PERIODS
dc.subjectHIGH DEBT
dc.subjectINCOME
dc.subjectINCOME STATEMENT
dc.subjectINCREASE IN DEBT
dc.subjectINDEBTED
dc.subjectINDEBTED COUNTRIES
dc.subjectINDEBTED POOR COUNTRIES
dc.subjectINDEBTEDNESS
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL DEVELOPMENT
dc.subjectINTERNATIONAL ECONOMICS
dc.subjectLARGE BORROWERS
dc.subjectLARGE DEBT
dc.subjectLENDERS
dc.subjectLENDING DECISIONS
dc.subjectLEVELS OF DEBT
dc.subjectLIQUIDITY
dc.subjectLIQUIDITY CRISIS
dc.subjectLOAN
dc.subjectLOANS TO COUNTRIES
dc.subjectMACROECONOMICS
dc.subjectMATURITIES
dc.subjectMONETARY FUND
dc.subjectMORAL HAZARD
dc.subjectMULTILATERAL DEVELOPMENT BANKS
dc.subjectMULTILATERAL LENDER
dc.subjectMULTILATERAL LENDERS
dc.subjectNEGOTIATIONS
dc.subjectNON-PERFORMING LOANS
dc.subjectPAYMENT OF DEBT
dc.subjectPER CAPITA INCOME
dc.subjectPER CAPITA INCOMES
dc.subjectPORTFOLIO
dc.subjectPORTFOLIO PERFORMANCE
dc.subjectPOVERTY ALLEVIATION
dc.subjectPRESENT VALUE
dc.subjectPROCUREMENT
dc.subjectPUBLIC POLICY
dc.subjectRECIPIENT COUNTRIES
dc.subjectREPAYMENT
dc.subjectREPAYMENT CAPACITY
dc.subjectREPAYMENT DIFFICULTIES
dc.subjectREPAYMENT OF LOANS
dc.subjectREPAYMENT PERIOD
dc.subjectREPAYMENTS
dc.subjectRULE OF LAW
dc.subjectTOTAL DEBT
dc.subjectTRUST FUND
dc.titleDoes IDA Engage in Defensive Lending?en
dspace.entity.typePublication
okr.doctypePublications & Research::Policy Research Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/2007/08/8178721/ida-engage-defensive-lending
okr.globalpracticeMacroeconomics and Fiscal Management
okr.globalpracticeFinance and Markets
okr.identifier.doi10.1596/1813-9450-4328
okr.identifier.externaldocumentum000158349_20070827113610
okr.identifier.internaldocumentum8178721
okr.identifier.reportWPS4328
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2007/08/27/000158349_20070827113610/Rendered/PDF/wps4328.pdfen
okr.topicFinance and Financial Sector Development::Access to Finance
okr.topicEconomic Theory and Research
okr.topicBanks and Banking Reform
okr.topicFinance and Financial Sector Development::Bankruptcy and Resolution of Financial Distress
okr.topicFinance and Financial Sector Development::Debt Markets
okr.topicMacroeconomics and Economic Growth
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isAuthorOfPublicationfe7bc90f-4a13-5746-9efb-e11d3386cdf8
relation.isAuthorOfPublication.latestForDiscoveryfe7bc90f-4a13-5746-9efb-e11d3386cdf8
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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