Advanced Search
MyIDEAS: Login to save this paper or follow this series

Rapid loan growth in Russia : A lending boom or a permanent financial deepening?

Contents:

Author Info

  • Havrylchyk, Olena

Abstract

In this paper we look at a number of factors surrounding the sharp increase in lending in Russia. First of all, we discuss the sources of loan growth and factors that have triggered rapid loan growth. Second, we consider the loan portfolio quality, singling out Sberbank and other state banks which could be prone to directed lending and could be subject to lax supervision. Third, we address the potential problem associated with the high exposure of banks to large borrowers and related parties, and concentration of loans to the oil and gas industry. Our analysis shows that rapid loan growth was preceded by strong economic growth and is accompanied by increased investments in fixed assets. In 2003, loan growth was further boosted by the rise in cross-border lending and international bond issuances. The short-term nature of this foreign debt is one of the sources of vulnerability for the Russian banks. The quality and the structure of the loan portfolio has improved significantly in the last years, but the real risk may be hidden because of the negative real interest rates, high growth of loans and lack of transparency. Future loan growth will mainly depend on the success of the current banking reform.

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://mpra.ub.uni-muenchen.de/20997/
File Function: original version
Download Restriction: no

Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 20997.

as in new window
Length:
Date of creation: Nov 2004
Date of revision:
Handle: RePEc:pra:mprapa:20997

Contact details of provider:
Postal: Schackstr. 4, D-80539 Munich, Germany
Phone: +49-(0)89-2180-2219
Fax: +49-(0)89-2180-3900
Web page: http://mpra.ub.uni-muenchen.de
More information through EDIRC

Related research

Keywords: loan growth; banking; Russia;

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Abdur Chowdhury, 2003. "Banking reform in russia: winds of change?," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 6(2), pages 89-103.
  2. Beck, Thorstein & Lundberg, Mattias & Majnoni, Giovanni, 2001. "Financial intermediary development and growth volatility : do intermediaries dampen or magnify shocks?," Policy Research Working Paper Series 2707, The World Bank.
  3. Levine, Ross & Zervos, Sara, 1998. "Stock Markets, Banks, and Economic Growth," American Economic Review, American Economic Association, vol. 88(3), pages 537-58, June.
  4. Asli Demirgüç-Kunt & Enrica Detragiache, 1997. "The Determinants of Banking Crises," IMF Working Papers 97/106, International Monetary Fund.
  5. Lubin, David, 2002. "Bank Lending to Emerging Markets: Crossing the Border," Working Paper Series UNU-WIDER Research Paper , World Institute for Development Economic Research (UNU-WIDER).
  6. R. T.A. de Haas & I. P.P van Lelyveld, 2004. "Foreign Bank Penetration and Private Sector Credit in Central and Eastern Europe," Journal of Emerging Market Finance, Institute for Financial Management and Research, vol. 3(2), pages 125-151, August.
  7. Barth, James R. & Caprio Jr., Gerard & Levine, Ross, 2001. "Bank regulation and supervision : what works best?," Policy Research Working Paper Series 2725, The World Bank.
  8. Cottarelli, Carlo & Dell'Ariccia, Giovanni & Vladkova-Hollar, Ivanna, 2005. "Early birds, late risers, and sleeping beauties: Bank credit growth to the private sector in Central and Eastern Europe and in the Balkans," Journal of Banking & Finance, Elsevier, vol. 29(1), pages 83-104, January.
  9. Aditya Narain & Pau Rabanal & Steen Byskov, 2003. "Prudential Issues in Less Diversified Economies," IMF Working Papers 03/198, International Monetary Fund.
  10. Pierre-Olivier Gourinchas & Rodrigo Valdes & Oscar Landerretche, 2001. "Lending Booms: Latin America and the World," JOURNAL OF LACEA ECONOMIA, LACEA - LATIN AMERICAN AND CARIBBEAN ECONOMIC ASSOCIATION.
  11. William Tompson, 2004. "What kind of 'financial safety net' for Russia? Russian Banking reform in comparative context," Post-Communist Economies, Taylor & Francis Journals, vol. 16(2), pages 115-135.
  12. World Bank, 2002. "Building Trust : Developing the Russian Financial Sector," World Bank Publications, The World Bank, number 15225, October.
  13. Cull, Robert, 1998. "How deposit insurance affects financial depth : a cross-country analysis," Policy Research Working Paper Series 1875, The World Bank.
Full references (including those not matched with items on IDEAS)

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:pra:mprapa:20997. 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: (Ekkehart Schlicht).

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.