A Re-assessment of Credit Development in European Transition Economies
AbstractThe aim of the paper is to re-assess the bank credit development in 11 Central and Eastern European countries and to provide new estimates of the credit-to-GDP ratio equilibrium level. Using filtering methods and dynamic panel estimations, our results suggest an “excessive” credit development for most of the studied economies until 2007. After this period, while credit has continued to remain excessive in Bulgaria, Hungary, Poland and Slovakia, it has decelerated in the other countries. However, while the results suggest a possibility of “credit crunch” in the Baltic republics and, to a less extent, in Croatia, credit deceleration may lead to “soft landing” for the Czech Republic, Romania and Slovenia.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 22692.
Date of creation: Mar 2010
Date of revision:
Bank Credit; Dynamic Panel; CEECs;
Find related papers by JEL classification:
- G2 - Financial Economics - - Financial Institutions and Services
- C2 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-05-22 (All new papers)
- NEP-BAN-2010-05-22 (Banking)
- NEP-TRA-2010-05-22 (Transition Economics)
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