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

Author/Editor:

Carlo Cottarelli ; Giovanni Dell'Ariccia ; Ivanna Vladkova Hollar

Publication Date:

November 1, 2003

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

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.

Series:

Working Paper No. 03/213

Subject:

English

Publication Date:

November 1, 2003

ISBN/ISSN:

9781451874969/1018-5941

Stock No:

WPIEA2132003

Price:

$15.00 (Academic Rate:$15.00)

Format:

Paper

Pages:

65

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