Determinants of Bank Credit in Emerging Market Economies
IMF Working Papers, March 1, 2011
Source details
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- Determinants of Bank Credit in Emerging Market Economies
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Bibliographic details
- Authors: Vahram Stepanyan, Kai Guo
- Published: March 1, 2011
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781455218035.001
Overview
- Authors: Vahram Stepanyan, Kai Guo
- Date: March 1, 2011
- Publication: IMF Working Papers
- Working Paper No.: 2011/051
- Issue: 051
- Volume: 2011
- Pages: 20
- DOI: https://doi.org/10.5089/9781455218035.001
- Stock No: WPIEA2011051
- ISBN: 9781455218035
- ISSN: 1018-5941
Research scope and data
- Examines changes in bank credit across a wide range of emerging market economies during the last decade.
- Uses rich time-series and cross-section information to draw broader lessons than studies limited to specific emerging market economies or shorter time periods.
Key empirical findings
- Domestic and foreign funding contribute positively and symmetrically to credit growth.
- Stronger economic growth leads to higher credit growth.
- High inflation:
- Increases nominal credit.
- Is detrimental to real credit growth.
- Loose monetary conditions, either domestic or global, result in more credit.
- The health of the banking sector matters for credit outcomes.
Subject and keywords
- Subject: Bank credit, Credit, Credit booms, Deposit rates, Financial crises
- Keywords: credit growth, deposit rate, WP
Policy implications (as discussed)
- Policy lessons discussed in the paper focus on the roles of funding sources, macroeconomic conditions, monetary conditions (domestic and global), inflation, and banking sector health in shaping bank credit dynamics.
IMF Working Paper: "Determinants of Bank Credit in Emerging Market Economies" by Vahram Stepanyan and Kai Guo (March 1, 2011).