Advanced Search
MyIDEAS: Login

On the Role of Banks in Enterprise Restructuring

Contents:

Author Info

  • Carare, Octavian
Registered author(s):

    Abstract

    The paper provides a framework for understanding why in Romania, like in any other Central and Eastern European country, before starting the process of enterprise restructuring, it is necessary to reform the financial sector. It also provides statistical evidence for understanding why the reform of the financial system could accelerate the process of enterprise restructuring. The data collected from 256 state-owned enterprises relate the real bank borrowing to the profits of the enterprises, the real stock of inter-enterprise arrears and the size of the enterprises. For studying whether good or bad SOEs receive in a different way bank loans, the determinants of state firms borrowing in Romania are analyzed for each of the three years the analysis is concerned, testing the hypothesis that the market-oriented reform of the banking system in Romania generated a better allocation of bank credit to state-owned enterprises. The current sample of 256 SOEs will be then split into subsamples, on the basis of the profit margin per employee in each enterprise. The regression run for the data related to bank borrowing in the enterprises which are part of these subsamples will try to answer the question whether banks take into consideration the profitability of enterprises in their decision to allocate credit. The regressions will be run for each year and some conclusions will be inferred from the differences in the values and in the significance of the coefficients associated with the variables in the regression. Considered to be important in the allocation of bank credit are the bank arrears, inter-enterprise arrears and the size of enterprises. At the end of this paper some policy tools will be suggested for improving the allocation of bank borrowing to state firms.

    Download Info

    If 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.
    File URL: http://www.ihs.ac.at/publications/eco/east/ro-29.pdf
    File Function: First version, 1995
    Download Restriction: no

    Bibliographic Info

    Paper provided by Institute for Advanced Studies in its series East European Series with number 29.

    as in new window
    Length: 20 pages
    Date of creation: Dec 1995
    Date of revision:
    Handle: RePEc:ihs:ihsrop:29

    Contact details of provider:
    Postal: Stumpergasse 56, A-1060 Vienna, Austria
    Phone: ++43 - (0)1 - 599 91 - 0
    Fax: ++43 - (0)1 - 599 91 - 555
    Web page: http://www.ihs.ac.at/index.php3?id=310
    More information through EDIRC

    Order Information:
    Postal: Institute for Advanced Studies - Library, Stumpergasse 56, A-1060 Vienna, Austria

    Related research

    Keywords: Restructuring; Financial Restructuring; Bank Lending in Transition;

    Find related papers by JEL classification:

    References

    No references listed on IDEAS
    You can help add them by filling out this form.

    Citations

    Lists

    This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

    Statistics

    Access and download statistics

    Corrections

    When requesting a correction, please mention this item's handle: RePEc:ihs:ihsrop:29. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Doris Szoncsitz).

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If references are entirely missing, you can add them using this form.

    If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.