Financial Crisis, Economic Recovery, and Banking Development in Russia, and other FSU Countries

Arbeitspapier

This paper provides a unified analysis for the onset of the 1998 financial crisis and the strong economic recovery afterward in Russia and other former Soviet Union countries. Before the crisis a banking failure arose owing to the coexistence of a lemons credit market and high government borrowing. In a lemons credit market low credit risk firms switched from bank to nonbank finance, including trade credits and barter trade, generating an externality on banks' interest rates. The collapse of the treasury bills market in the financial crisis triggered a change in banks' lending behavior, providing initial conditions for banking development.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: SFB/TR 15 Discussion Paper ; No. 79

Classification and Topics

• Classification: Wirtschaft ; Banks; Depository Institutions; Micro Finance Institutions; Mortgages ; Socialist Institutions and Their Transitions: Financial Economics ; Economic Development: Financial Markets; Saving and Capital Investment; Corporate Finance and Governance ; Asymmetric and Private Information; Mechanism Design
• Subject: banking development ; institutional trap ; financial crisis

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Huang, Haizhou ; Marin, Dalia ; Xu, Chenggang
• Event: Veröffentlichung
• (who): Sonderforschungsbereich/Transregio 15 - Governance and the Efficiency of Economic Systems (GESY)
• (where): München
• (when): 2004

Further information

• DOI: doi:10.5282/ubm/epub.13472
• Handle: http://hdl.handle.net/10419/93960
• URN: urn:nbn:de:bvb:19-epub-13472-0
• Last update: 10.03.2025, 11:43 AM CET