Are Weak Banks Leading Credit Booms? Evidence from Emerging Europe

Are Weak Banks Leading Credit Booms? Evidence from Emerging Europe
This paper examines the behavior of bank soundness indicators during episodes of brisk loan growth, using bank-level data for central and eastern Europe and controlling for the feedback effect of credit growth on bank soundness. No evidence is found that rapid loan expansion has weakened banks during the last decade, but over time weaker banks... READ MORE...

Publication date: September 2008
ISBN 9781451870770
$18.00

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