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The Provision of Long-term Financing in the Transition Economies

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  • Nikola Tasic

    (National Bank of Serbia)

  • Neven Valev

    (National Bank of Serbia)

Abstract

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

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Bibliographic Info

Paper provided by National Bank of Serbia in its series Working papers with number 14.

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Length: 27 pages
Date of creation: Jul 2008
Date of revision:
Handle: RePEc:nsb:wpaper:14

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Postal: National Bank of Serbia, 12 Kralja Petra St, 11 000 Belgrade, Republic of Serbia
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Keywords: development; credit maturity; liquidity; transition economies;

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