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Early Birds, Late Risers, and Sleeping Beauties: Bank Credit Growth to the Private Sector in Central and Eastern Europe and in the Balkans
Author:
Ivanna Vladkova Hollar null

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,
Mr. Giovanni Dell'Ariccia
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Mr. Carlo Cottarelli
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Series:
IMF Working Papers
Volume/Issue:
Volume 2003: Issue 213
Language:
English
Publication Date:
01 Nov 2003
DOI:
https://doi.org/10.5089/9781451874969.001
ISBN:
9781451874969
ISSN:
1018-5941
Pages:
65
Keywords:
WP; BCPS ratio; CEB country; credit growth; fiscal policy; aggregate demand; interest rate; credit booms; financial developments; transition economies; CEB bank; banking system fragility; credit to household; world bank staff; bank profitability; deposit-to-GDP ratio; Credit; Bank credit; Consumer credit; Capital inflows; Central and Eastern Europe; Western Europe
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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Following a period of privatization and restructuring, commercial banks in Central and Eastern Europe and, more recently, in the Balkans have rapidly expanded their lending to the private sector. This paper describes the causes of this expansion, assesses future trends, and evaluates its policy implications. It concludes that bank credit to the private sector is likely to continue rising faster than GDP in the next few years throughout the region, picking up also in countries where so far it has been stalled. Although this growth should be regarded as a structural and positive development, policymakers will have to evaluate carefully its implications for macroeconomic developments and financial stability.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund