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The provision of long-term financing in the transition economies

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  • Tasic, Nikola
  • Valev, Neven

Abstract

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

Suggested Citation

  • Tasic, Nikola & Valev, Neven, 2010. "The provision of long-term financing in the transition economies," Journal of Comparative Economics, Elsevier, vol. 38(2), pages 160-172, June.
  • Handle: RePEc:eee:jcecon:v:38:y:2010:i:2:p:160-172
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    Cited by:

    1. repec:eee:chieco:v:46:y:2017:i:s:p:s35-s49 is not listed on IDEAS
    2. Park,Haelim & Ruiz Ortega,Claudia & Tressel,Thierry, 2015. "Determinants of long-term versus short-term bank credit in EU countries," Policy Research Working Paper Series 7436, The World Bank.
    3. repec:spr:empeco:v:54:y:2018:i:3:d:10.1007_s00181-017-1262-1 is not listed on IDEAS

    More about this item

    Keywords

    Financial development Credit maturity Liquidity Transition economies;

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • P34 - Economic Systems - - Socialist Institutions and Their Transitions - - - Finance

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