01731cas a2200241 a 4500 AALejournalIMF000825 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451845433 1018-5941 BD-DhAAL BD-DhAAL Rother, Philipp. Explaining the Behavior of Financial Intermediation : Evidence from Transition Economies / Philipp Rother. Washington, D.C. : International Monetary Fund, 1999. 1 online resource (32 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper investigates the effects of macroeconomic and structural variables on financial intermediation. To this end, it presents a theoretical foundation for two new measures of intermediation, the money multiplier and the ratio of private sector credit to monetary base. Results from panel estimations covering 19 transition economies indicate that policy makers need to address in particular the problems of bad loans on bank balance sheets and high market concentration while maintaining a stable macroeconomic environment. Further variables, such as minimum reserve requirements and the capital adequacy ratio, are found to possess less explanatory power. Mode of access: Internet IMF Working Papers; Working Paper ; No. 1999/036 Full text available on IMF http://elibrary.imf.org/view/journals/001/1999/036/001.1999.issue-036-en.xml IMF e-Library