IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Login to save this paper or follow this series

Firms, Banks and Credit in Russia

  • Q. Fan
  • U. Lee
  • M.E. Schaffer

This paper provides an empirical analysis of the relations between industrial enterprises and the banks in Russia from the perspective of enterprises, using data from a World Bank survey of 439 large and medium industrial Russian enterprises conducted in mid-1994. The paper finds evidence of a large "bad debt" problem in the Russian banking sector: one quarter or more of bank debt is overdue, and it was very common for the firms in the survey to fall into arrears with their banks. The nearly universal outcome in such cases was the capitalization of overdue interest and the rescheduling of principal. There are, moreover, signs of adverse selection operating, with firms that do hold bank debt tending to be financially less healthy than the average across a wide range of measures . However, there are also signs of positive developments in the Russian banking sector. The ease of obtaining bank credit is positively related to the creditworthiness of the borrower, a sign that banks at least sometimes evaluate the creditworthiness of their customers when making lending decisions. The paper also finds, somewhat surprisingly, no significant evidence of insider lending: although the number of enterprises which hold shares in banks is significant (about half of the firms in the survey), most enterprises are only minority shareholders and there is no apparent impact of shareholding on credit allocation.

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://www.sml.hw.ac.uk/downloads/cert/wpa/1996/dp9609.pdf
Download Restriction: no

Paper provided by Centre for Economic Reform and Transformation, Heriot Watt University in its series CERT Discussion Papers with number 9609.

as
in new window

Length:
Date of creation: 1996
Date of revision:
Handle: RePEc:hwe:certdp:9609
Contact details of provider: Postal: Edinburgh EH14 4AS
Phone: +44(0)131 451 3497
Fax: +44(0)131 451 3497
Web page: http://www.sml.hw.ac.uk/research/cert.htm
More information through EDIRC

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. G. Alfandari & M.E. Schaffer, 1996. ""Arrears" in the Russian Enterprise Sector," CERT Discussion Papers 9608, Centre for Economic Reform and Transformation, Heriot Watt University.
  2. Pinto, Brian & van Wijnbergen, Sweder, 1994. "Ownership and corporate control in Poland : why state firms defied the odds," Policy Research Working Paper Series 1308, The World Bank.
Full references (including those not matched with items on IDEAS)

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:hwe:certdp:9609. 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: (Professor Mark Schaffer)

The email address of this maintainer does not seem to be valid anymore. Please ask Professor Mark Schaffer to update the entry or send us the correct address

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.