IDEAS home Printed from https://ideas.repec.org/a/taf/jbemgt/v6y2005i4p219-224.html
   My bibliography  Save this article

Foreign capital and credit market development: The case of Lithuania

Author

Listed:
  • Aleksandras Rutkauskas
  • Gitana Dudzevičiūte

Abstract

There have been wide‐ranging discussions on whether the investments of foreign banks into the banking sector of the Central and Eastern Europe countries (CEE) lead to greater competition and increase of the loan portfolio of the banks. Several empirical works have shown that a high proportion of foreign capital in the banking sector of CEE countries has generally positive effects on the quality and amount of loan portfolio of the banking sector, but there may also be some adverse effects. Lithuania has an open economy and the credit market is open to international banking competition. The loan portfolio of the banks in Lithuania was growing very rapidly during the last year. A drop in the loan interest rates was significant and banks offered credits under favourable conditions. At the same time, the Lithuanian banking sector is largely foreign‐owned. Foreign investors currently own approx. 87 % of the share capital of banks in Lithuania. The aim of this paper is to investigate the link between the Lithuanian credit market development and the entry of foreign banks.

Suggested Citation

  • Aleksandras Rutkauskas & Gitana Dudzevičiūte, 2005. "Foreign capital and credit market development: The case of Lithuania," Journal of Business Economics and Management, Taylor & Francis Journals, vol. 6(4), pages 219-224.
    • Handle: RePEc:taf:jbemgt:v:6:y:2005:i:4:p:219-224
    DOI: 10.1080/16111699.2005.9636111
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/16111699.2005.9636111
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/16111699.2005.9636111?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:jbemgt:v:6:y:2005:i:4:p:219-224. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TBEM20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.