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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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  • Tasic, Nikola & Valev, Neven, 2010. "The provision of long-term financing in the transition economies," Journal of Comparative Economics, Elsevier, vol. 38(2), pages 160-172, June.
    • Handle: RePEc:eee:jcecon:v:38:y:2010:i:2:p:160-172
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    Cited by:

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    2. Park,Haelim & Ruiz Ortega,Claudia & Tressel,Thierry, 2015. "Determinants of long-term versus short-term bank credit in EU countries," Policy Research Working Paper Series 7436, The World Bank.
    3. Du, Julan & Li, Chang & Wang, Yongqin, 2017. "A comparative study of shadow banking activities of non-financial firms in transition economies," China Economic Review, Elsevier, vol. 46(S), pages 35-49.
    4. Hu, Bo & Schclarek, Alfredo & Xu, Jiajun & Yan, Jianye, 2022. "Long-term finance provision: National development banks vs commercial banks," World Development, Elsevier, vol. 158(C).
    5. Léon, Florian, 2020. "The provision of long-term credit and firm growth in developing countries," Economic Modelling, Elsevier, vol. 90(C), pages 66-78.
    6. Florian Leon, 2019. "The provision of long-term credit and firm growth," DEM Discussion Paper Series 19-08, Department of Economics at the University of Luxembourg.
    7. Angela S. Bergantino & Claudia Capozza, 2018. "Banking market structure and industry growth in the Central-East Europe region," Empirical Economics, Springer, vol. 54(3), pages 1319-1333, May.

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