A Credit Crunch? : A Case Study of Finland in the Aftermath of the Banking Crisis /

This paper estimates a disequilibrium model of credit supply and demand to evaluate whether there was a credit crunch in Finland following the banking crisis of 1991-92. Empirical analysis suggests that the marked reduction in bank lending was mainly in reaction to a cyclical decline in credit deman...

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Detalles Bibliográficos
Autor principal: Pazarbasioglu, Ceyla
Formato: Revista
Lenguaje:English
Publicado: Washington, D.C. : International Monetary Fund, 1996.
Colección:IMF Working Papers; Working Paper ; No. 1996/135
Acceso en línea:Full text available on IMF
Descripción
Sumario:This paper estimates a disequilibrium model of credit supply and demand to evaluate whether there was a credit crunch in Finland following the banking crisis of 1991-92. Empirical analysis suggests that the marked reduction in bank lending was mainly in reaction to a cyclical decline in credit demand, likely exacerbated by the high level of indebtedness of the borrowers. It also appears that banks became less willing to supply credit during periods associated with a deterioration in asset quality, and reduced profits due to declining regulatory protection from competition, and a need to increase capital adequacy levels.
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Descripción Física:1 online resource (18 pages)
Formato:Mode of access: Internet
ISSN:1018-5941
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