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.
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Bibliographic InfoArticle provided by Palgrave Macmillan in its journal Staff Papers - International Monetary Fund.
Volume (Year): 44 (1997)
Issue (Month): 3 (September)
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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
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- Seppo Honkapohja & Erkki Koskela, 1999.
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CEPR & CES & MSH, vol. 14(29), pages 399-436, October.
- 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 2003-581, William Davidson Institute at the University of Michigan.
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- 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 2190, The World Bank.
- 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.
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"¿Por qué en Colombia el Crédito al Sector Privado es tan Reducido,"
Borradores de Economia
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- Enrique López & Adolfo Barajas & Hugo Oliveros, 2001. "¿ Por qué en Colombia el Crédito al Sector Privado es tan Reducido?," BORRADORES DE ECONOMIA 003787, BANCO DE LA REPÚBLICA.
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