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The Maturity Structure of Bank Credit: Determinants and Effects on Economic Growth

Author

Listed:
  • Nikola Tasic

    (National Bank of Serbia)

  • Neven Valev

    (National Bank of Serbia)

Abstract

A new data set from the transition economies shows that the private sector has increasing access to long-term bank financing. In several transition countries credit has similar maturity structure to that in Western Europe, while in other transition countries credit remains mostly short-term. Several factors explain these differences: the political and institutional environment, bank privatization, sustained low inflation, the levels of economic and financial development, and the establishment of credit information sharing institutions. In contrast, the share of foreign owned banks and banking sector competition have no influence on credit maturity.

Suggested Citation

  • Nikola Tasic & Neven Valev, 2008. "The Maturity Structure of Bank Credit: Determinants and Effects on Economic Growth," Working papers 13, National Bank of Serbia.
    • Handle: RePEc:nsb:wppnbs:13
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    financial development; economic growth; credit maturity; liquidity;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth

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