Munich Personal RePEc Archive

A Re-assessment of Credit Development in European Transition Economies

Zdzienicka, Aleksandra (2010): A Re-assessment of Credit Development in European Transition Economies.

[img]
Preview
PDF
MPRA_paper_22692.pdf

Download (379kB) | Preview

Abstract

The 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.

UB_LMU-Logo
MPRA is a RePEc service hosted by
the Munich University Library in Germany.