An Analysis of the Credit Union for Migrant Workers in Thailand

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Abstract/Contents

Abstract: Along the Thai-Burmese border region of the Sangkhlaburi District, Kanchanaburi province, Thailand, there reside displaced ethnic communities who migrated from Burma. These people have been deprived of access to commercial banks or any other formal financial services because they do not carry Thai identification cards. This form of financial exclusion acts as a barrier to development for this local community. In order to analyze the effectiveness of one institution, the Pattanarak Credit Union (PCU), that addresses the financial needs of this community in terms of meeting legitimate financial needs of the migrant workers, I test if the PCU charges competitive rates and provides much-needed loans to the members of the group. This paper proposes a financial model to study the effectiveness of the PCU and analyzes the savings and borrowing mechanisms of its microcredit program. My honors thesis shows that the PCU’s mechanisms have been effective in keeping the default rate at zero and withdrawal rate low. This study also finds that the interest rates charged on borrowers should be raised to maximize dividends distributed back to members of the credit union, which is in keeping with the PCU’s social mission.

Type of resource	text
Date created	May 2011

Author	Jivasantikarn, Kittiprapha
Primary advisor	Hope, Nicholas C.
Degree granting institution	Stanford University, Department of Economics

Subject	Stanford Department of Economics
Subject	microfinance
Subject	interest rate
Subject	microloan
Subject	migrant workers
Subject	financial exclusion
Genre	Thesis

Location	https://purl.stanford.edu/yq765kz8327

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Preferred Citation: Jivasantikarn, Kittiprapha. (2011). An Analysis of the Credit Union for Migrant Workers in Thailand. Stanford Digital Repository. Available at: https://purl.stanford.edu/yq765kz8327

Stanford University, Department of Economics, Honors Theses

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