A Credit Crunch? Finland in the Aftermath of the Banking Crisis
AbstractThis paper estimates a disequilibrium model of credit supply and demand to evaluate whether there was a credit crunch in Finland following the banking crisis of 1991-92. Empirical analysis suggests that the marked reduction in bank lending was mainly in reaction to a cyclical decline in credit demand, likely exacerbated by the high level of indebtedness of the borrowers. It also appears that banks became less willing to supply credit during periods associated with a deterioration in asset quality, as well as because of reduced profits owing to declining regulatory protection from competition and the need to increase capital adequacy levels.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Palgrave Macmillan in its journal Staff Papers - International Monetary Fund.
Volume (Year): 44 (1997)
Issue (Month): 3 (September)
Contact details of provider:
Web page: http://www.palgrave-journals.com/
Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK
Find related papers by JEL classification:
- E44 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Financial Markets and the Macroeconomy
- G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
- G28 - Financial Economics - - Financial Institutions and Services - - - Government Policy and Regulation
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Christophe Hurlin & Rafal Kierzenkowski, 2002. "A Theoretical and Empirical Assessment of the Bank Lending Channel and Loan Market Disequilibrium in Poland," National Bank of Poland Working Papers, National Bank of Poland, Economic Institute 22, National Bank of Poland, Economic Institute.
- Adolfo Barajas & Enrique López & Hugo Oliveros, .
"¿Por qué en Colombia el Crédito al Sector Privado es tan Reducido,"
Borradores de Economia
185, Banco de la Republica de Colombia.
- Enrique López & Adolfo Barajas & Hugo Oliveros, 2001. "¿ Por qué en Colombia el Crédito al Sector Privado es tan Reducido?," BORRADORES DE ECONOMIA, BANCO DE LA REPÃBLICA 003787, BANCO DE LA REPÚBLICA.
- Honkapohja, Seppo & Koskela, Erkki, 2002.
"The Economic Crisis of the 1990s in Finland,"
Discussion Papers, The Research Institute of the Finnish Economy
683, The Research Institute of the Finnish Economy.
- Christophe Hurlin & Rafal Kierzenkowski, 2003.
"Credit Market Disequilibrium in Poland: Can We Find What We Expect? Non-Stationarity and the “Min”Condition,"
William Davidson Institute Working Papers Series, William Davidson Institute at the University of Michigan
2003-581, William Davidson Institute at the University of Michigan.
- Hurlin, Christophe & Kierzenkowski, Rafal, 2003. "Credit Market Disequilibrium in Poland : Can We Find What We Expect ? Non-Stationarity and the"Min" Condition," Economics Papers from University Paris Dauphine, Paris Dauphine University 123456789/3410, Paris Dauphine University.
- Sylvanus Ikhide, 2003. "Was There a Credit Crunch in Namibia Between 1996-2000?," Journal of Applied Economics, Universidad del CEMA, vol. 0, pages 269-290, November.
- Ferri, Giovanni & Tae Soo Kang, 1999. "The credit channel at work - lessons from the Republic of Korea's financial crisis," Policy Research Working Paper Series, The World Bank 2190, The World Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elizabeth Gale).
If references are entirely missing, you can add them using this form.