BANK CREDIT TO THE PRIVATE SECTOR BEFORE, DURING AND AFTER THE CRISIS – EVIDENCE FROM CESEE COUNTRIES
Abstract
The banking sector constitutes nearly the whole financial system in South East Europe and Central East Europe and as such is vital for the placement of loans in the economy.
The period before the global financial crisis recorded high growth in loan, averaging 30% per year during 2004 to 2008.The period during and after the crisis recorded significant falls in loan rates, generally from reductions in funding from abroad and which before the crisis were abundant.
This paper aims to examine loan rates in both periods, comparing the potential determinants of credit in the private sector. We also attempt to answer whether there was excess lending before the crisis and in addition deficient lending during and after the crisis.
References
Allen, F., Beck, Th., Carletti, E., Lane, Ph., Schoenmaker, D., & Wagner, W. (2011). Cross-Border Banking in Europe: Implications for Financial Stability and Macroeconomic Policies, Centre for Economic Policy Research, London.
Anastasakis, O., Bastian, J., & Watson, M. (2011). From Crisis to Recovery Sustainable Growth in South East Europe, South East European Studies at Oxford (SEESOX), University of Oxford.
Aslimoski, J. (2014). Ulogata na golemite banki od EU vo bankarskite sistemi na JIE vo periodot na finansiskata i fiskalnata kriza 2007-2011 godina (The role of large EU banks in SEE banking systems during the financial and fiscal crisis of 2007-2011), master thesis, UKAM, Economic Faculty, Skopje.
Bank for International Settlements (BIS) (2015). Locational Banking Statistics, retieved December, 2015, from http://www.bis.org/statistics/bankstats.htm
Barlett, W., & Prica, I. (2012 April). The variable impact of the global economic crisis in South East Europe, working paper, LSEE – Research on South Eastern Europe, London.
Civici, A. (2011). Iluzionet monetare, mashtrimet e mëdha (Monetary illusions, big fraud), OMBRA GVG.
Dell’Ariccia, G., Igan, D., & Laeven, L. (2012). Credit Booms and Lending Standards: Evidence from the Subprime Mortgage Market, Journal of Money, Credit and Banking, 44(2-3): 367–384.
Demetriades O. P. & Hussein A. K. (1996). Does Financial Development cause Economic Growth? Time Series evidence from 16 countries, Journal of Development Economics vol. 51, Issue 2, pp 387-411.
Foos, D., Norden, L., & Weber, M. (2010). Loan growth and riskiness of banks, Journal of Banking & Finance, 34: 2929-2940.
Gallego, S., Gardo, S., Martin, R., Molina, L., & Serena, J. M. (2010). The impact of the global economic and the financial crisis on Central, Eastern and Southeastern Europe (CESEE) and Latin America, working paper Documentos Ocasionales. N. 1002, Banco de Espana, Madrid.
Giannetti, M. & Ongena, S. (2008). Lending by Example: Direct and Indirect Effects of Foreign Bank Entry in Emerging Markets, Tilburg University Mimeo.
Goldsmith, W. R. (1969). Financial Structure and Development, New Haven, Connecticut: Yale University Press.
Habibullah, M. S. & Eng Yoke-kee (2006). Does Financial Development Cause Economic Growth? A Panel Data Dynamic Analysis for the Asian Developing Countries, Journal of the Asia Pacific Economy Vol. 11, No: 4, pp 377 – 393.
Haselmann, R. (2006). Strategies of Foreign Banks in Transition Economies, Emerging Markets Review 7, 283-299.
International Finance Statistics (IFS) (2015). International Monetary Fund (IMF), retrieved December 2015 from http://data.imf.org/?sk=5DABAFF2-C5AD-4D27-A175-1253419C02D1
King, R.G., & Levine, R. (1993 August). Finance and Growth: Schumpeter might be right, The Quarterly Journal of Economic, Vol.108, No. 3, pp. 717-737.
Maechler, A., Mitra, S., & Worrell, D. (2010). Decomposing Financial Risks and Vulnerabilities in Emerging Europe, IMF Staff Papers, 57: 25-60.
Magud, N. E., Reinhart, C. M., & Vesperoni, E. R. (2012, February). Capital Inflows, Exchange Rate Flexibility, and Credit Booms, IMF Working Paper.
McKinnon, & Ronal, I. (1973). Money & Capital in Economic Development, Washington D.C., The Brookings Institution.
Rousseau, P. L., & Wachtel, P. (1998, November). Financial Intermediation and Economic Performance: Historical Evidence from Five Industrialized Countries, Journal of Money, Credit and Banking, Vol. 30, No. 3, Part 2.
Sanfey, P. (2011). South East Europe: lessons from the global economic crisis”, “From Crisis to Recovery Sustainable Growth in South East Europe, South East European Studies at Oxford (SEESOX), University of Oxford.
World Economic Outlook Databases (WEO) (2015). International Monetary Fund (IMF), retrieved December 15, 2015, from http://www.imf.org/external/ns/cs.aspx?id=28
Copyright information
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (Creative Commons Attribution License 3.0 - CC BY 3.0) that allows others to share the work with an acknowledgement of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
info@iseic.cz, www.iseic.cz, ojs.journals.cz
