1.

Record Nr.

UNINA9910825895003321

Autore

Igan Deniz

Titolo

Are Weak Banks Leading Credit Booms? Evidence from Emerging Europe / / Deniz Igan, Natalia Tamirisa

Pubbl/distr/stampa

Washington, D.C. : , : International Monetary Fund, , 2008

ISBN

1-4623-7899-4

1-4518-7077-9

1-4519-9434-6

9786612841705

1-282-84170-X

Edizione

[1st ed.]

Descrizione fisica

1 online resource (23 pages) : illustrations, tables

Collana

IMF Working Papers

IMF working paper ; ; WP/08/219

Altri autori (Persone)

TamirisaNatalia

Disciplina

332.1

Soggetti

Banks and banking - State supervision - Europe, Central - Econometric models

Banks and banking - State supervision - Europe, Eastern - Econometric models

Credit - Europe, Central - Econometric models

Credit - Europe, Eastern - Econometric models

Banks and Banking

Finance: General

Money and Monetary Policy

Industries: Financial Services

Monetary Policy, Central Banking, and the Supply of Money and Credit: General

Banks

Depository Institutions

Micro Finance Institutions

Mortgages

Financial Institutions and Services: General

General Financial Markets: Government Policy and Regulation

Monetary economics

Banking

Finance

Bank credit

Credit

Distressed institutions

Bank soundness

Banks and banking



Financial services industry

Czech Republic

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

Bibliographic Level Mode of Issuance: Monograph

Nota di bibliografia

Includes bibliographical references.

Nota di contenuto

Intro -- Contents -- I. Introduction -- II. Modeling How Bank Soundness Affects Credit Growth -- A. Empirical Model -- B. Estimation Method -- C. Data -- III. Are Weak Banks Driving Credit Expansions? -- A. Main Results and Their Robustness -- B. What is Driving the Results? -- IV. Concluding Remarks -- References -- Tables -- 1. Sample Coverage -- 2. Summary Statistics by Period and Region -- 3. Simultaneous Modeling of Bank Credit Growth and Distance to Default -- 4. Credit Growth in Weak Banks -- 5. Differences in Bank Credit Growth in the Baltics and Other Central and Eastern European Countries -- 6. Differences in Credit Growth in Banks with High Exposures to Foreign-Currency Lending and Household Lending -- Appendix -- I. Data Sources and Methodology.

Sommario/riassunto

This paper examines the behavior of bank soundness indicators during episodes of brisk loan growth, using bank-level data for central and eastern Europe and controlling for the feedback effect of credit growth on bank soundness. No evidence is found that rapid loan expansion has weakened banks during the last decade, but over time weaker banks seem to have started to expand at least as fast as, and in some markets faster than, stronger banks. These findings suggest that during credit booms supervisors need to carefully monitor the soundness of rapidly expanding banks and stand ready to take action to limit the expansion of weak banks.