The ups and downs of banking system in transition
Transition from a stage of inflation and/or currency depreciation to a period of monetary stability puts heavy pressures on the banking system. The stage of monetary contraction during attempts at disinflation brings the banking system to the verge of crisis. The success of stabilization and subsequent expansion works to improve conditions in the banking system; yet, an expansion which is too fast and unbalanced may end in a new crisis. Based on data obtained from a sample of Russian banks and from a cross-country panel, this study aims to identify the channels for the transmission of monetary developments during the stabilization of banking system operations
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