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The provision of long-term financing in the transition economies

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  • Tasic, Nikola
  • Valev, Neven

Abstract

A new data set from the transition economies shows that the private sector has increasing access to long-term bank financing. In a few transition countries credit has similar maturity structure to that in Western Europe, while in others credit remains mostly short-term. Several factors explain these differences: the political and institutional environment, inflation, economic and financial development, and the establishment of institutions that share information about borrowers. In contrast, the share of foreign-owned banks, the share of state-owned banks, and banking sector competition have no influence on credit maturity.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Comparative Economics.

Volume (Year): 38 (2010)
Issue (Month): 2 (June)
Pages: 160-172

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Handle: RePEc:eee:jcecon:v:38:y:2010:i:2:p:160-172

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Web page: http://www.elsevier.com/locate/inca/622864

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Keywords: Financial development Credit maturity Liquidity Transition economies;

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