Huang, Haizhou, Marin, Dalia and Xu, Cheng-Gang (2003) Financial crisis, economic recovery and banking development in former Soviet Union economies. . Centre for Economic Policy Research (Great Britain), London, UK.
Full text not available from this repository.Abstract
This Paper explains both the onset of the financial crisis in 1998 and the striking economic recovery afterwards in Russia and other former Soviet Union (FSU) economies. Before the crisis banks do not lend to the real sector of the economy, and firms use non-bank finance ? including trade credits and barter trade ? to finance production. The banking failure arises due to the coexistence of adverse selection in a lemons credit market jointly with high government borrowing. The collapse of the treasury bills market in the financial crisis of August 1998 triggers a change in banks’ lending behaviour. As a result output recovers which provides initial conditions for banking development.
| Item Type: | Monograph (Discussion Paper) |
|---|---|
| Official URL: | http://www.cepr.org |
| Additional Information: | © 2003 Haizhou Huang, Dalia Marin and Chenggang Xu |
| Divisions: | Economics |
| Subjects: | H Social Sciences > HG Finance |
| JEL classification: | G - Financial Economics > G3 - Corporate Finance and Governance > G30 - General G - Financial Economics > G2 - Financial Institutions and Services > G21 - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages D - Microeconomics > D8 - Information, Knowledge, and Uncertainty > D82 - Asymmetric and Private Information O - Economic Development, Technological Change, and Growth > O1 - Economic Development > O16 - Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance P - Economic Systems > P3 - Socialist Institutions and Their Transitions > P34 - Financial Economics |
| Date Deposited: | 05 Jun 2008 13:17 |
| Last Modified: | 11 Dec 2024 18:36 |
| URI: | http://eprints.lse.ac.uk/id/eprint/5406 |
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