Abstract
Since the mid-1990s, the transition countries of Central and South East Europe have made major strides in restructuring their banking systems.1 A wave of foreign investment in banking has occurred, resulting in foreign bank ownership of a majority of bank assets in almost all of the countries. This has also been accompanied by strengthening of banking supervision, and improvements in the legal environment. A much more competitive environment has resulted, and the quality of the banking system seems vastly improved.2
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Baccheta, P and Gerlach, S. 1997: Consumption and credit constraints: International evidence. Journal of Monetary Economics 40: 207–238.
Backé, P and Zumer, T. 2005: Developments in credit to the private sector in Central and Eastern European EU member states: Emerging from financial repression — A comparative overview. Focus on Transition 2: 83–109.
Berkowitz, D, Pistor, K and Richard, J-F. 2003: Economic development, legality and the transplant effect. European Economic Review 47(1): 165–195.
Borio, C and Lowe, P. 2002: Asset prices, financial and monetary stability: Exploring the nexus, BIS Working papers no. 114, July 2002.
Caprio, G and Klingebiel, D. 1996: Bank insolvency: Bad luck, bad policy or bad banking. Annual Bank Conference on Developing Economies: 79–114.
Cottarelli, C, Del’Ariccia, G and Vladkova-Hollar, I. 2003: Early birds, late risers, and sleeping beauties: Bank credit growth to the private sector in Central and Eastern Europe and the Balkans, IMF Working paper WP/03/213, November 2003.
Corricelli, F, Mucci, F and Revoltella, D. 2006: Household credit in the New Europe: Lending boom or sustainable growth, CEPR Working paper no. 5520, March 2006.
Croatian National Bank. 2006: Macroprudential Analysis, Number 3, September, p. 8.
Duenwald, C, Gueorguiev, N and Schaechter, A. 2005: Too much of a good thing? Credit booms in transition economies: The cases of Bulgaria, Romania and Ukraine, IMF Working papers WP/05/128, June 2005.
Eichengreen, B and Rose, A. 1998: Staying afloat when the wind changes: External factors and emerging-market banking crises, NBER Working paper 6730, January 1998.
Eichengreen, B and Arteta, C. 2000: Banking crisis in emerging markets: Risks and red herrings. In: Blejer, M and Skreb, M (eds). Financial Policies in Emerging Markets. MIT Press: Cambridge, pp. 47–94.
European Bank for Reconstruction and Development. 1998: Transition Report: London, various issues.
European Central Bank. 2002: Review of the International Role of the Euro. European Central Bank: Frankfurt.
Galac, T. 2005: Results of the third CNB bank survey: Croatian banks in the consolidation and market positioning stage, 2000–2002, Croatian National Bank Survey S-14, December 2005.
Galac, T and Dukić, L. 2005: Rezultati četvrtoga HNB-ova anketiranje banaka, Pregledi Hrvatske Narodne Banke P-20, August 2005 (in Croatian only).
Gourinchas, P-O, Valdés, R and Landerretche, O. 2001: Lending booms: Latin America and the world, NBER Working paper 8249, April 2001.
Herrmann, S and Jochem, A. 2005: Determinants of current account deficits in the Central and East European EU member states -consequences for the enlargement of the euro area. Deutsche Bundesbank Discussion paper no. 32/2005.
King, R and Levine, R. 1993: Finance and growth. Quarterly Journal of Economics 108: 717–737.
Kraft, E. 1998: Credit policies of Croatian Banks, Croatian National Bank Survey #8 April 1998.
Kraft, E. 2000: The lending policies of Croatian Banks: Results of the Second CNB Bank interview project, Croatian National Bank Survey S-3, December 2000.
Kraft, E. 2006: How competitive is Croatia’s Banking system? Croatian National Bank Working Papers W-14, March 2006.
Kraft, E and Jankov, L. 2005: Does speed kill? Lending booms and their consequences in croatia. Journal of Banking and Finance 29(1): 105–121.
La Porta, R, Lopez-de-Silanes, F and Schleifer, A. 1997: Legal determinants of external finance. Journal of Finance 52: 1131–1150.
La Porta, R, Lopez-de-Silanes, Fand Shleifer, A. 1998: Law and finance. Journal of Political Economy 106(6): 1113–1155.
Levine, R, Loayza, N and Beck, T. 2000: Financial intermediation and growth: Causality and causes. Journal of Monetary Economics 46: 31–77.
Pistor, K, Raiser, M and Gelfer, S. 2000: Law and finance in transition economies. Economics of Transition 8(2): 325–368.
Rousseau, P. 2002: Historical perspectives on financial development and economic growth, NBER Working paper 9333, November 2002.
Wachtel, P. 2001: Growth and finance — What do we know and how do we know it? International Finance 4: 335–362.
World Bank Development data (http://www.devdata.worldbank.org/data-query/).
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Copyright information
© 2016 Evan Kraft
About this chapter
Cite this chapter
Kraft, E. (2016). The Boom in Household Lending in Transition Countries: A Croatian Case Study and a Cross-Country Analysis of Determinants. In: Brada, J.C., Wachtel, P. (eds) Global Banking Crises and Emerging Markets. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-137-56905-9_7
Download citation
DOI: https://doi.org/10.1007/978-1-137-56905-9_7
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-56185-8
Online ISBN: 978-1-137-56905-9
eBook Packages: Economics and FinanceEconomics and Finance (R0)